Forex

GBPUSD holds near 16-month low of 1.3000

GBPUSD is posting a selling interest move, testing the 1.3000 psychological level, which is a fresh 16-month low. The RSI indicator is pointing upwards in the oversold zone, while the stochastic oscillator created a bullish crossover within its %K and %D lines below the 20 level. Both are suggesting that the bearish mode has come to an end and the next move may be to the upside.

If the price recovers and returns above the 1.3080 resistance, the next target could be the 1.3270 resistance and the 20-day simple moving average (SMA) at 1.3295. Surpassing these lines, the 40-day SMA at 1.3410 and the 1.3485 may act as crucial restrictive levels for the bulls.

If sellers take the upper hand again and declines below the 1.3000, the next support level could come from the 1.2850 hurdle, taken from the lows in November 2020. Even lower, the market could have a pause near 1.2670, registered in September 2020.All in all, GBPUSD has been in a falling move since May 2021 but any advances beyond the 200-day SMA may switch this outlook to neutral.

About the author

Melina Deltas

Melina joined XM in December 2017 as an Investment Analyst in the Research department. She can clearly communicate market action, particularly technical and chart pattern setups. Her technically focused method looks mainly at price action across multiple time frames to capture big moves that develop over the years. She has more than 3 years of experience in analyzing financial markets, specializing in forex, indices, and commodities. Melina studied Pure Mathematics at Lancaster University and has a Master's Degree in Monetary and Financial Economics from the University of Cyprus. Currently, she is an associate member of the Society of Technical Analysts (STA) and a Certified Financial Technician (CFTe).

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