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MTrading Team • 2024-01-08

GBPUSD fades bounce off 200-SMA

GBPUSD fades bounce off 200-SMA

GBPUSD prints mild losses around 1.2700 on early Monday, after snapping a three-week uptrend in the last. In doing so, the Cable pair justifies the previous week’s downside break of a two-month-old rising support line, now immediate resistance around 1.2765, as well as fades the bounce off a 200-SMA level surrounding 1.2635. However, the upbeat conditions of the RSI (14) line and the bullish MACD signals keep the buyers hopeful unless the quote slips beneath the stated key SMA, a break of which could quickly drag the quote toward December’s low of 1.2500. It should be noted that the Pound Sterling’s weakness past 1.2500 will have the 61.8% Fibonacci retracement level of near 1.2375 as the last defense of the buyers.

On the flip side, the GBPUSD pair buyers can regain control by crossing the support-turned-resistance line of around 1.2765. Following that, the recent peak surrounding 1.2830 and an ascending trend line from late November, close to 1.2860 at the latest, could check the Pound Sterling’s upside momentum ahead of directing the bulls toward the 1.3000 psychological magnet. Should the quote remain firmer past the 1.3000 threshold, the previous yearly high of nearly 1.3145 will be in the spotlight.

To sum up, the GBPUSD pair buyers are likely losing control, the sellers need validation from the 200-SMA breakdown to retake control.

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