GBPUSD rangebound but downside risks linger
2022.04.01 13:39
GBPUSD has been experiencing a decline in the past 10 days, after its upside trajectory paused at the 1.3300 region. Although the pair managed to halt its downtrend and is currently experiencing a consolidation phase, its technical picture seems to be deteriorating.
The momentum indicators suggest that bearish forces continue to hold the upper hand. Specifically, the stochastic oscillator is sloping downwards after posting a bearish crossover, while the RSI is hovering below its 50-neutral threshold. Moreover, the price is currently trading beneath the Ichimoku cloud, endorsing a broader bearish tone for the pair.
Should selling interest intensify further, the price could encounter immediate support at the recent low of 1.3105. Falling beneath this floor, the bears may target 1.3050, which is the lower boundary of its sideways movement. Failing to stop there, the price decline could then stall at the 16-month low of 1.3000.
Alternatively, if buyers re-emerge and regain control, initial resistance could be met at the recent high of 1.3182. Conquering this barricade, the price might ascend towards the 1.3225 barrier before the spotlight turns to the 1.3300 psychological mark. Higher, 1.3438 could prove to be a tough obstacle for the bulls as it rejected further price advances twice in February.
Overall, GBPUSD’s short-term picture remains neutral as the precious metal seems stuck between opposing directional forces, while broader near-term risks are tilted to the downside. Therefore, for that neutral-to-bearish tone to alter, the price needs to profoundly jump above the 1.3300 ceiling.
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