GBP/USD facing resistance at 1.24552; will it break toward 1.26700?
- GBP/USD is struggling at the 20-SMA level at 1.24552.
- All Technical Indicators are offering Neutral Signals.
- The currency pair breaks below the ascending channel.
The Technical outlook of the H4 chart of the GBP/USD currency pair suggests that the market participants are awaiting any signal confirmation. The sterling pair has dropped below the ascending channel it has been following for over a month. This could mean that a reversal or correction is on its way to drag down the prices. However, other indicators have not yet confirmed these signals, which is why market participants are hesitant to give one direction to the pair.
The currency pair is struggling to move past the initial resistance level at 1.24552, the same level where the 20-period Simple Moving Average (SMA) is resting. Any break above this level could help Pound regain its strength back against the greenback. If the trend continues, it could further push the prices high toward the next critical resistance at 1.2667.
On the other hand, if the GBP/USD prices fail to move past the 20-SMA line and continue dropping, it would extend their downfall below the 50-SMA line towards the 1.23492 level. Meanwhile, the MACD histograms are still above the zero line, but they are contracting and fading, giving signs of possible trend weakness. Furthermore, the Relative Strength Index (RSI) and Stochastic Oscillator are both hovering near the mid-level, giving signs of neutral sentiment in the market.
The idea is to wait for the GBP/USD price to move past the 1.24552 level before entering a buy position. And any break below the 50-SMA line would open an opportunity for short-selling.
GBP/USD Daily Technical Levels