Technical Analysis – GBPUSD bounces off 50-day SMA
GBPUSD rebounds from a 1-month low
But the price trades flat in past couple of sessions
Momentum indicators improve but remain neutral
GBPUSD came under some selling pressure following its recent three-month peak of 1.2859, breaking below the short-term ascending trendline that connects its higher lows since April. Moreover, the pair fell to a fresh one-month low last week, but the 50-day simple moving average (SMA) prevented further retreats.
Should the short-term pullback extend, the June support of 1.2655 could act as the first line of defence. Sliding beneath that floor, the price could descend towards the recent one-month bottom of 1.2620. Failing to halt there, the pair might challenge 1.2598, a region that held strong both in January and March.
Alternatively, if the bulls regain the upper hand, the January-February resistance region of 1.2771 may come under examination. A violation of that zone could pave the way for the 1.2816-1.2859 range, defined by the recent three-month peak and the December 2023 high. Jumping above that range, the pair could revisit its 2024 high of 1.2892.
Overall, GBPUSD managed to pause its decline at the 50-day SMA, but its rebound does not look very promising. For that bearish sentiment to alter, the pair needs to break its short-term structure of lower lows.Related Assets
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