Forex News

GBP/USD Faces Intraday Correction and Dearth of Traction


GBP/USD is trading at 1.217 in the global market and has lost the steady momentum after the drawing winning streak on May 20, 2020. As the pair fell below 1.22 price area, it lost stable support from 50-day and 200-day MA on the hourly chart.

After the gradual downtrend until May 18, 2020, Pound started strengthening, however, faced strong resistance at 1.230 price area and failed to rise above 38.20% Fib Retracement level. The intraday correction has led the pair to draw a bearish divergence as GBP weakened against the increasing demand of the US Dollar—restoring the charm it lost in the meanwhile.

GBP Price Chart

On the hourly chart, Pound has marked a 30-day low at 1.207, and a fall below this will lead to an even deeper dip in the intraday leading to utter selling pressure. GBP/USD is struggling to regain support from the daily MAs as it turns south.

The descending price in the intraday has tested supports below 1.2174, and the nearest support lies at 1.2170, and the RSI is already near to the selling zone at 35.92. However, if the pair plummets to the said nearest support, it will face strong selling pressure. On the flip side, the major resistance to watch out for lies at 1.230.

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Elizabeth Bullock
Elizabeth Bullock is a cryptocurrency trader and actively participates in crypto-exchanges. She has knowledge of various cryptocurrencies. She also has keen interest in finance and is a finance blogger.

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