GBP/USD Price Analysis: Impending bear cross keeps sellers hopeful around 1.2250
|- GBP/USD fades week-start rebound, seesaws inside short-term triangle.
- MACD signals join downbeat moving average crossover to suggest further declines, 1.2200 holds the key to welcome bears
- SMA convergence appears a tough nut to crack for buyers.
GBP/USD remains sidelined around the mid-1.2200s as it funnels down to the short-term triangle break during early Tuesday’s Asian session.
The cable pair began the week on a positive note but fails to stay firmer as the receding bullish bias of the MACD joins the looming bearish moving average crossover between the 100-SMA and the 200-SMA.
While the 100-SMA’s clear downside break of the 200-SMA from above could tease the sellers, a confirmation is needed before forming a downside bias.
As a result, a short-term triangle will be in focus and hence the GBP/USD pair’s declines below the 1.2200 become necessary for the bearish confirmation.
Following that, the cable pair could quickly drop to 1.2100 threshold before challenging the multi-month low around 1.1935 marked the last week.
Alternatively, an upside clearance of the 1.2290 hurdle could defy the bear cross and propel the quote towards the 61.8% Fibonacci retracement of May 26 to June 16 downside, around 1.2390.
However, a convergence of the stated key SMAs, near 1.2410 by the press time, appears a strong resistance to cross for the GBP/USD buyers before taking control.
GBP/USD: Four-hour chart
Trend: Further weakness expected
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.