GBP/USD Moves Horizontally Within a Channel – What’s Next?
2024.10.29 07:18
- GBP/USD loses momentum near uptrend line
- Stochastic ticks higher, but RSI flattens
headed south in the preceding week, breaking the long-term ascending trendline to the downside. However, the pair is currently holding within a tight range after failing to extend the bearish tendency, but there is strong resistance at the 1.3000 round number.
According to technical oscillators, the stochastic is moving higher with strong momentum, while the RSI is moving horizontally, beneath the neutral threshold of 50, mirroring the latest sideways move in the market.
If there is a successful recoupment of the previous losses and a jump beyond the 1.3000 critical level, then the market may retest the 20-day simple moving average (SMA) at 1.3020, ahead of the 1.3100 handle.
On the other hand, a drop beneath the 1.2900 support could test another tough obstacle near the 200-day SMA at 1.2810. Diving further, the 1.2610-1.2670 region may pause the negative action in the market.
In summary, the GBP/USD has been consolidating in the very short-term view and has been in a descending mode since the pullback from the two-and-a-half-year high of 1.3433. If the selling interest persists and breaches the 200-day SMA, the outlook will turn bearish.
