Technical Analysis – GBPUSD slips near strong support of 1.3265
- GBPUSD remains above 20-day SMA
- Stochastic and RSI reflect latest downside move.
GBPUSD is notably retreating from the two-and-a-half-year high of 1.3433, meeting the 20-day simple moving average (SMA) at 1.3235. Furthermore, the pair is still hovering above the strong support of 1.3265, but the technical oscillators mirror the latest downside move.
The stochastic oscillator is heading south from the overbought region with strong momentum, while the RSI is moving horizontally above the neutral threshold of 50.
As long as the price remains above 1.3265, it may challenge the 1.3433 resistance level before running towards the February 2022 high of 1.3635.
Otherwise, a significant drop beneath the 20-day SMA may send the market towards the 50-day SMA at 1.3060, ahead of the 1.3000 key level. Steeper losses could pave the way for a test of the medium-term ascending trend line at 1.2910.
All in all, GBPUSD has been in an upward trend since April, and only a decline beneath the 200-day SMA, which stands near 1.2770, may switch the outlook to bearish.
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