GBPUSD Analysis: Once again pressured by 55-hour SMA
|GBPUSD
The 55-hour SMA has managed to restrict the Pound from appreciation for the fifth consecutive session. This line was re-tested early on Wednesday, followed by a plunge down to the weekly S2 at 1.2854.
It is apparent that the pair has fallen down to the bottom boundary of three different-scale channels. This allows to think that some appreciation might be under way. In addition, technical indicators still remain in the strongly oversold territory. A surge is expected only if the 55-hour SMA and the monthly and weekly S1s are breached at 1.2930. This move should trigger bulls for a short-term surge up to the monthly PP at 1.3050, at least.
On the other hand, it does not seem that the rate could sustain the current decline any longer. The psychological 1.28 level is unlikely to be breached to the downside.
Interested in GBPUSD technicals? Check out the key levels
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.