Technical Analysis – GBPUSD bounces off 1.2300 but remains at risk
GBPUSD posts new 5-month low
Price holds in bearish tendency
MACD and stochastics suggest upside move
GBPUSD is recovering from the five-month low of 1.2300 that was posted on Monday and is heading towards the restrictive region of 1.2495-1.2520. The pair has started a bearish tendency since the price peaked at 1.2892 in the short-term timeframe.
According to technical oscillators, the MACD is trying to cross its trigger line to the upside beneath the zero level. Also, the stochastic oscillator is moving strongly higher following the rebound off the oversold territory.
If traders continue to buy the pair, then the price could meet the aforementioned region and the 20-day simple moving average (SMA) around 1.2520. Slightly higher, the 200-day SMA at 1.2555 and the near-term descending trend line at 1.2585 may block the upside movement.
On the other hand, a move lower again could retest the previous trough of 1.2300 before tumbling further towards the 1.2180 bottom, registered on November 10.
In a nutshell, GBPUSD is in a bearish mode in the short-term picture as it is standing beneath the downtrend line and the SMAs.Related Assets
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