GBPUSD pares some losses after hitting 13-month low
|GBPUSD eases slightly to the upside after the aggressive falling mode posted in the preceding five weeks. The cable recorded an almost 13-month low of 1.2722 and the rally brought the price below the 20- and 40-simple moving averages (SMAs) and near the lower Bollinger Band in the daily timeframe. However, the technical indicators are suggesting for a possible upside correction.
From the technical point of view, the RSI indicator is moving slightly higher but below the 30 mark in the oversold zone, while the stochastic oscillator has already created a bullish crossover within the %K and %D lines in the oversold zone, both indicating an upside movement is more likely than a downside one.
In case of an upside run, expectation is for a move towards the 1.2960 hurdle, where a break would confirm further bullish corrections until the 23.6% Fibonacci retracement level of the downleg from 1.4375 to 1.2722, near 1.3112, which stands near the 40-day SMA.
However, a clear dip below the 1.2722 low would bring the price down to the 1.2630 support, taken from the lows on June 2017. Further losses would drive the pair towards the 1.2580 barrier.
Overall, GBPUSD continues the strong negative outlook in the medium-term, maintaining the steep downfall from the 1.4375 peak.
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.