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

Share:

  • 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 rebound 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

FX

Articles You May Like

Union Budget 2024: Crypto community’s wishlist
Here’s why Abbott Labs stock is getting dinged after a strong earnings beat
NZD/USD Price Analysis: Pair gave up and lost the 0.6070 vital area
Spirit Airlines forecasts bigger quarterly loss as revenue falls short of expectations
Buying FTSE China A50 index (XIN9) on the monthly chart

Leave a Reply

Your email address will not be published. Required fields are marked *