GBP/USD bulls get rejected at 200-SMA

Christina Parthenidou XM

Overview: GBP/USD shifted into corrective mode after its upward trajectory off six-week lows was rejected near the 200-SMA, signaling fading bullish momentum and increasing downside risks in the coming sessions.

Momentum: The RSI and stochastic peaked in the overbought area and are now pushing lower. The MACD is drifting toward its red signal line, endorsing the softer price action.

Bearish scenario: A decisive break below the support trendline and the 1.3450 number could pave the way to 1.3400. Additional declines from there could extend to 1.3370.

Risk: A durable move above the 200-SMA and the 61.8% Fibonacci level of 1.3520 could revive upside pressure toward 1.3555. From there, the bulls may attempt to breach the 1.3580 mark with scope to reach May’s triple top around 1.3650.

Author

Christina Parthenidou

Christina joined Trading Point in May 2017. She holds a master degree in Economics and Business from the Erasmus University Rotterdam with a specialization in International economics.

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