GBP/USD Stops at 1.2350 Before Sliding Further
2025.01.21 03:10
- GBP/USD holds below mid-Bollinger band level
- Momentum oscillators tick lower
had a notable bullish day on Monday, more specifically after Trump’s inauguration, but it failed to cross above the 1.2350 resistance level and the 20-day simple moving average (SMA).
Technically, the pair is holding below the mid-level of the Bollinger band, confirming the negative tendency with the RSI pointing downwards below the neutral threshold of 50. Moreover, the stochastic oscillator is losing some ground, being ready to post a bearish crossover within its %K and %D lines. It is important to mention that the 50- and the 200-day simple moving averages (SMAs) posted a death cross in the preceding month.
If the market slides further, it could meet support at the lower Bollinger band, which overlaps with the 15-month low of 1.2100 before creating a new low near the October 2023 bottom at 1.2070.
Alternatively, a successful attempt to surpass the 1.2350 and the 20-day SMA could send traders to have a battle with the long-term downtrend line at 1.2450. Above this line, the bulls would need to break the 1.2560-1.2605 restrictive region, which encapsulates the 50-day SMA, to meet the upper Bollinger band at 1.2650.
To conclude, GBP/USD remains strongly negative in all timeframes, and only a move above the 200-day SMA may change the current outlook.
