Technical Analysis – GBPUSD retains bearish tendency
- GBPUSD recovers some of its lost ground
- RSI and MACD turn up
GBPUSD had a strong bullish start on Friday, travelling towards the 20-day simple moving average (SMA) at 1.2750. The recent bounce off the six-month low of 1.2486 gave some boost to the market to raise optimism for further increases in the market.
According to technical oscillators, they both confirm an upside correction. The RSI is sloping slightly up beneath the 50 territory, while the MACD crossed above its trigger line below the zero level.
If the upside pressure persists, then the price should surpass the 1.2715 resistance to endorse a hit of the flat 200-day SMA at 1.2820. Marginally higher, the 1.2840 barrier and the steep descending trend line could be tough obstacles to overcome.
On the other hand, a downside move may drive the bears lower toward the six-month bottom of 1.2486 ahead of the 1.2445 support.
All in all, GBPUSD has been in a significant bearish structure since September 26 with a climb above 1.2840 indicating a positive retracement in the short-term.
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