GBPUSD hit a more than seven-week low during yesterday’s trading. At the moment, it is mostly unchanged from the day’s open while price movement has been lacking volatility as well.
The RSI is currently bearish and well below the 50 neutral level at 34. The stochastics are also painting a negative short-term picture, as the %K line is in negative territory as well. Note though that %K is in oversold territory below the 20 mark. This could be a sign that an immediate-term upside movement for the pair is not to be ruled out.
On the upside, the 1.22 handle could serve as a psychological barrier. A break above this level would eye another potential key level that held in the past, namely the 1.23 mark. Further upside moves are expected to meet resistance at the current level of the 50-day moving average (MA) at 1.2384.
On the downside, yesterday’s low of 1.2134 could provide support. Should it fail to hold, focus would shift to the mid-January thirty-two year low of 1.1986, which is expected to serve as an important support level.
Regarding the medium-term outlook, it is bearish as the price is below both the 50-and 200-day MAs and has been trending downwards since the latter part of February.
Overall, the short- and medium-term outlook is bearish.
Origin: XM
