fxs_header_sponsor_anchor

News

GBP/USD Price Analysis: Braces for a bumpy road to south, 200-DMA in the spotlight

  • GBP/USD consolidates the biggest daily loss in a fortnight around weekly low.
  • Ascending trend lines from January and last November precede 200-DMA to challenge bears.
  • U-turn from 50-DMA, bearish MACD signals favor sellers.

GBP/USD stays defensive around 1.2030, bouncing off the weekly low, as it licks the previous day’s wounds during early Thursday.

In doing so, the Cable pair rebounds from a six-week-old support line after falling the most in a fortnight. The recovery moves, however, remain elusive considering the quote’s sustained U-turn from the 50-DMA and the bearish MACD signals.

It’s worth noting, though, that the ascending support lines from early January and mid-November 2022, respectively around 1.2000 and 1.1985 in that order, restrict the short-term downside of the GBP/USD pair.

Following that, the 200-DMA level of 1.1940 gains the major attention of the bears targeting the mid-November 2022 bottom around 1.1760. However, the previous monthly low surrounding 1.1840 could offer an intermediate halt during the fall.

Meanwhile, GBP/USD recovery remains elusive unless crossing the 50-DMA hurdle of near 1.2180.

In a case where the GBP/USD price remains firmer past 50-DMA, a one-month-old horizontal resistance near 1.2260 will be in focus as it holds the key for the Cable pair’s run-up toward the multiple tops marked since late 2022 around 1.2450.

Overall, GBP/USD is likely to remain depressed but the downside room appears limited.

GBP/USD: Daily chart

Trend: Limited downside expected

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.


RELATED CONTENT

Loading ...



Copyright © 2024 FOREXSTREET S.L., All rights reserved.