GBP/USD: British Pound Retreats After Hitting 20-Day SMA
2025.01.08 06:20
- GBP/USD remains beneath the downtrend line.
- RSI and MACD weaken momentum.
- 200-day SMA looks to be tough resistance.
returned to the downside after it topped the significant resistance level of 1.2560 and the 20-day simple moving average (SMA). The market has been bearish since the pullback from the two-and-a-half-year high of 1.3433 with technical oscillators indicating a weak momentum.
The RSI indicator is pointing marginally up below the neutral threshold of 50, while the MACD oscillator is crossing its trigger line to the upside, remaining beneath the zero level.
Buyers might adopt a wait-and-see approach until the price breaks above the medium-term downtrend line and the 1.2560-1.2605 resistance area. Hence, a violation there could activate a bullish wave towards the 50-day SMA at 1.2680. Further up, the pair may take a breather around the 1.2730 barrier and the flat 200-day SMA at 1.2815.
On the flip side, further downside movements could see traders testing the previous low of 1.2351 ahead of the round number of 1.2300, reached in April 2024.
All in all, GBP/USD needs a strong boost to change the outlook to a more positive one, especially a break above the 200-day SMA.
