GBPUSD Analysis: Bearish pressure allays
|GBPUSD
Downside risks have pressured the GBP/USD exchange rate lower for two consecutive weeks. Following a breakout from the senior channel on Thursday, the Pound fell even lower and eventually reached a fresh one-year low - the monthly S2 at 1.2750 mid-Friday. Since then, the pair has been trading with volatility above this monthly support.
Given that the Pound remains strongly oversold, it seems that bears have exhausted their strength, thus giving opportunity for bulls to take over the market soon. Strong upside pressure will be necessary to dash through the combined resistance of the 55– and 100-hour SMAs and the weekly PP at 1.2840.
It is more likely that the Sterling tries to push higher today; however, if a fall nevertheless occurs, the 1.26 mark should not be surpassed.
Interested in GBPUSD technicals? Check out the key levels
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