GBP/USD Takes A Breather But Bears Remain In Control
2022.04.29 11:26
In the course of an active downward move, GBP/USD slipped below 1.2500. It signals high interest in selling the currency pair. Remarkably, traders do not worry that the pound sterling is strongly oversold. It could mean an inertial price action so that either technical or fundamental analysis does not matter for the time being.
During a retracement, the H4 RSI technical instrument crossed the line of the oversold status upwards. This move could signal that the bears are regaining control. It will give a fresh impetus to the downward cycle.
Moving averages on the H4 and D1 Alligators are neglecting the retracement stage. Moving averages point downwards, thus indicating a downtrend.
According to the daily chart, the US dollar is extending its large-scale rally. The main signal to sell GBP was generated at the moment when the psychological level of 1.3000 was broken. GBP/USD has not exhausted its selling opportunities yet, so that traders will open more short positions.
Outlook And Trading Tips
GBP/USD is making a technical upward retracement to give a pause to the bears. Later on, short positions will not be so overheated. The pound sterling is set to weaken more. Hence, the overall outlook is bearish. The downward target is defined at the psychological level of 1.2000.
Due to a technical retracement, complex indicator analysis provides a buy signal for the short term. However, indicators suggest selling for intraday trading and on the back of the overall downtrend in the medium term.
EUR/USD 4-hour chart.
