GBP/USD Price Analysis: Holds one-month ascending trendline
|- GBP/USD holds trendline rising from Sept. 23 lows.
- Indicators, howver, are yet to adopt a bull bias.
GBP/USD is currently trading at 1.2994, having hit a low of 1.2916 Wednesday.
The daily chart shows the bulls managed to defend the ascending trendline connecting Sept. 23 and Oct. 16 lows on Wednesday despite the coronavirus-induced risk aversion and increased haven demand for the dollar.
However, it is still early to call a bullish revival. That's because both the 14-day relative strength index is biased neutral at 50, while the MACD histogram is looking to crossover into a bearish territory below zero.
Besides, the pair is yet to clear Wednesday's high of 1.3064. A close above would validate the bullish trendline's defense and confirm a reversal higher, exposing the Oct. 21 high of 1.3177.
Alternatively, acceptance below Wednesday's low of 1.2916 would shift the focus to the 200-day simple moving average at 1.2706.
Daily chart
Trend: Neutral
Technical 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.