Technical Analysis – GBP/USD flattens near 200-day SMA

gbp4GBPUSD has been in a trading range since the end of December 2020, showing no significant directional moves.

In the short-term picture, the price is also flattening near the strong 200-day simple moving average (SMA), with the technical indicators confirming the neutral bias. The MACD is holding near its zero line and the RSI is moving sideways above the 50 level, both with weak momentum.

Should the pair strengthen its positive momentum, the next resistance could come around the 1.4000 psychological mark, which has been acting as a mid-level of the broader consolidation area. Above this level, the next target could be placed within the 1.4248-1.4345 region, a break of which would shift the bias to positive.

However, if prices are unable to break into the upper half of the range, the risk would shift back to the downside, with the 20-day SMA at 1.3770 coming into focus. Even lower, the next key support to watch could be detected near 1.3577 and 1.3435. Failure to hold above these boundaries would switch the neutral phase to negative.

Overall, GBPUSD has been incapable to post any significant moves in the broad picture. Only an exit from the long-term consolidation area would change the current view.

Origin: XM

Leave a Reply