With its heavy fall on Friday, GBPUSD ended the last week on a negative note, after four consecutive weekly gains. Adding strength to the bearish bias is the rising wedge chart formation. Furthermore, the RSI and MACD conditions also keep sellers on the lookout for opportunities. As a result, a clear downside break of the stated wedge’s support line, around 1.2415 by the press time, quickly followed by the 100-SMA support of 1.2385, becomes necessary for the bears to retake control. Following that, the 200-SMA support of around 1.2230 can act as an intermediate halt during the theoretical target of the wedge, close to 1.2050.
Alternatively, the GBPUSD pair’s recovery may initially aim for regaining the 1.2500 round figure before challenging the stated bearish formation’s upper line, near the latest peak of around 1.2550. In a case where the Cable pair remain firmer past 1.2550, the 1.2600 threshold and May 2022 high of around 1.2665 will be in focus.
Overall, GBPUSD buyers ran out of steam but the bears need confirmation from the 1.2385 to retake control.