GBP/USD trades bearish below the 75-SMA and the $1.273 resistance. The downtrend will likely resume if bears close below $1.261. Please note that the bearish outlook should be invalidated if the British pound’s value exceeds $1.273.
GBPUSD Technical Analysis – 16-December-2024
FxNews—The British pound trades in a bear market against the greenback at approximately $1.263, below the 75-period simple moving average. However, the Stochastic Oscillator has hinted at an oversold market since December 13, meaning a consolidation phase could be on the horizon.
Additionally, the Awesome Oscillator histogram turned green, below zero, meaning the downtrend weakened.
Overall, the technical indicators suggest the primary trend is bearish and should resume after a minor consolidation.
GBPUSD Downtrend Possible if Bears Break $1.261
The immediate support is at $1.261. From a technical perspective, the downtrend will likely extend to the lower support levels if GBP/USD dips below this support. In this scenario, the next bearish target could be $1.256.
Furthermore, if the selling pressure drives the prices below $1.256, the path to the November 22 low at $1.249 will likely be paved.
- Also read: Watch EURUSD for a Potential Drop to $1.039
Please note that the bearish outlook should be invalidated if the pair’s value exceeds $1.273.