GBPUSD closed below the supportive 20-day simple moving average on Friday (SMA), increasing the case for additional downside corrections.
Despite the weakness in the MACD and the downward direction in the RSI, the area around the 50-day SMA slightly beneath at 1.3769 could provide another opportunity for the bulls to rebuild their strength as they did back in December. If this level holds firm, with the price crossing back above the nearby 1.3960 resistance and the red Tenkan-sen line too, the door would initially open for the 1.4135 barrier, and then for the 1.4235 peak.
Should sellers drive below the 50-day SMA, the 38.2% Fibonacci of 1.3639 could add some footing ahead of the 50% Fibonacci of 1.3455. Another break lower would smash confidence in the medium-term uptrend.
In brief, GBPUSD is pushing for some recovery near the 50-day SMA. A clear move beyond 1.3960 could eliminate downside risks.
Origin: XM
