GBP/USD meets 1.2500 after hitting 11-month high [Video]

Melina Deltas, CFTe XM

GBPUSD is retreating after the climb towards a new eleven-month high of 1.2585 in the previous week and is finding significant support near the 20-day simple moving average (SMA). Currently, the market remains well above the long-term uptrend line, indicating more gains. The MACD oscillator is moving sideways in the positive territory, while the RSI is ticking marginally higher above the neutral threshold of 50.

More upside pressures could open the way for a retest of the previous high of 1.2585 ahead of the 1.2665 resistance, registered in May 2022. Above this hurdle, the 200-weekly SMA, which hovers near the next resistance of 1.2855, may halt the bullish moves.

Alternatively, any downside movements could re-challenge the 20-day SMA at 1.2450 before slipping towards the 1.2270-1.2350 support region, which encapsulates the 50-day SMA too. Beneath these levels, the ascending trend line around 1.2170 could act as a turning point for traders ahead of resting near the 23.6% Fibonacci retracement level of the up leg from 1.0325 to 1.2585 at 1.2050.

All in all, GBPUSD is continuing to maintain an upside structure and only a plunge below the uptrend line and the 200-day SMA at 1.1940 could switch the outlook to bearish.

Author

Melina Deltas, CFTe

Melina joined XM in December 2017 as an Investment Analyst in the Research department. She can clearly communicate market action, particularly technical and chart pattern setups.

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