Technical Analysis – GBPUSD gives strong battle with uptrend line
- GBPUSD holds in tight range in near term
- MACD and RSI tick lower
GBPUSD is flirting with the long-term ascending trend line after the downfall from the 1.3045 resistance level. The next crucial point for traders to meet is the 1.2840 support and the 200-day simple moving average (SMA) at 1.2820.
According to technical oscillators, the RSI is pointing south below the 50 territory, while the MACD is crossing its trigger line to the downside below the zero level.
If the market retreats further and breaks the 200-day SMA at 1.2820, then the market could challenge the restrictive supportive region of 1.2610-1.2670.
On the other hand, a potential rebound off the uptrend line may drive the market toward the 20-day SMA at 1.2960. Climbing higher, the pair may touch the 1.3045 barrier and the 1.3100 round number, which overlaps with the 50-day SMA, endorsing the bullish mode in the bigger picture.
All in all, GBPUSD has been in a sideways move over the last month, but a plunge below the 200-day SMA would open the way for steeper bearish actions.
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