GBP/USD is testing the 1.261 resistance as the RSI signals a bullish divergence. If the prices exceed 1.261, the current uptick momentum will likely extend to 1.268 resistance, backed by the 75-SMA.
GBPUSD Technical Analysis – 23-December-2024
The British Pound began a consolidation phase from 1.249 support, which, in conjunction with the November 22 low, erased 1.1% of its losses.
As of this writing, the currency pair trades at approximately 1.257, removing the immediate resistance of 1.261.
Regarding the technical indicators, the RSI 14 and Stochastic depict 46 and 44 in the description and are rising. This means the bullish sentiment strengthens. Additionally, the Awesome Oscillator histogram is green but below zero, which interprets as the bear market weakened.
GBPUSD Eyes 1.261 Breakout on Bullish Signs
The immediate resistance is at 1.261. From a technical perspective, GBP/USD’s current bullish momentum could be resumed if the prices exceed 1.261. In this scenario, the next bullish target could be 1.268.
- Also read: EURUSD Bearish Signal Below $1.038
The Bearish Scenario
Please note that the bullish outlook should be invalidated if GBP/USD falls below the immediate support of $1.256. In this scenario, the next bearish target could be retesting the November 22 Low at $1.249.