GBP/USD battles with crucial technical level
2023.06.06 05:08
had been in a downside correction after peaking at the one-year high of 1.2678 on May 10. However, the pair retraced back higher when it found support at the long-term ascending trendline, while it is currently challenging a fortified zone that includes the 50-day simple moving average (SMA), the upper end of the Ichimoku cloud and a historical resistance level near 1.2445.
The momentum indicators currently suggest a neutral near-term bias. Specifically, the RSI is hovering around the 50-neutral mark and the MACD remains above its red signal line but in the negative territory.
Should buying pressures intensify, the bulls could initially attempt to overcome the congested technical region around 1.2445. Surpassing that zone, the price might ascend towards the recent resistance of 1.2543, which also provided upside protection in April. A violation of that region may set the stage for the one-year peak of 1.2678.
Alternatively, should the pair reverse lower to extend its short-term pullback towards the key support trendline, 1.2367 could act as the first line of defense. If that barrier fails, the May low of 1.2307 might appear on the radar. Further retreats could then cease at 1.2195, which served both as resistance and support in the past months.
In brief, GBPUSD is currently testing a very important technical region, where a failure to break above it could result in a downside breach of its long-term ascending trendline. Nevertheless, a jump above the fortified territory could enable the bulls to propel the price towards a fresh multi-month peak.
