Blog post

​Technical Analysis: GBPUSD remains weak below 200-day SMA after UK GDP

After witnessing downbeat UK data dump for April, including over 20% fall in GDP, GBPUSD remains on the back foot below the key SMA. As a result, the sellers can keep targeting a 50% Fibonacci retracement level of 1.2460 during the further declines. However, an ascending trend line from March 20 could restrict the pair's further fall around 1.2380. In a case where the bears dominate past-1.2380, May month low near 1.2075 could be challenged.

On the upside, 61.8% of Fibonacci retracement at 1.2710 offers additional resistance to the pair beyond a 200-day SMA level of 1.2680. Even if the pair manage to cross 1.2710 daily, a six-month-old descending resistance line near 1.2845 becomes the key to watch. The reason is the pair's likely bulls run towards March month high around 1.3200.

Join us on FB and Twitter to stay updated on the latest market events

Our awards

award1 award2 award3 award4