Technical Analysis – GBPUSD moves near its new 2-month high
GBPUSD marks positive rally in near term
Oscillators show mixed signs
To attract new buyers, the bulls will have to have a closing day above the 1.2710 barrier and move beyond to the 1.2820 resistance level. In this case, the price could pick up steam towards the important resistance level of 1.2892.
However, the mixed technical indicators do not convince traders of the bullish scenario. The narrowing stochastic oscillator indicates a potential descending movements as it is standing in the overbought territory, but the RSI is flirting with the 70 level.
Hence, a downside correction could still be possible in the coming sessions. If the pair slumps below the 1.2710 range, it could stabilize near the 1.2630 support. Otherwise, the sell-off could expand towards the bullish crossover within the 20- and the 50-day simple moving averages (SMAs) at 1.2580. Yet only a clear close below the 200-day SMA at 1.2535 would disappoint short-term traders.
Summing up, GBPUSD has not eliminated downside risks yet, despite marking a positive rally since April 22. To boost buying confidence, the pair will need to crawl above 1.2710, and more importantly, strengthen its uptrend above the six-month high of 1.2892.Related Assets
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