The GBP/USD currency pair tested the June 27 low at $1.261 as resistance in today’s trading session. The uptick in prices earlier today was expected because the RSI indicator hinted at an oversold market. However, the bullish momentum eased near $1.261, backed by the 50-period simple moving average.
As of this writing, the currency pair traders at approximately 1.256, pulling away from the 50-SMA.
GBPUSD Downtrend May Resume from $1.226
The immediate resistance rests at the June 27 low ($1.261). From a technical perspective, a new bearish wave could emerge if GBP/USD remains below $1.261. In this scenario, the next bearish target could be the May 9 low at $1.245. Furthermore, if the selling pressure exceeds $1.245, the prices could dip to $1.23.
- Good reads: EURUSD Near 50-SMA as Bearish Trend Holds Strong
The Bullish Scenario
Please note that the bearish outlook should be invalidated if GBP/USD bulls pull the prices above the immediate resistance ($1.261). If this scenario unfolds, the currency pair could rise to test the 100-period simple moving average as resistance at $1.273.
- Support: 1.245 / 1.24 / 1.23
- Resistance: 1.261 / 1.273 / 1.284