HomeContributorsTechnical AnalysisGBPUSD Gives Up Some Ground ahead of UK PM's Press Conference

GBPUSD Gives Up Some Ground ahead of UK PM’s Press Conference

GBPUSD shifted to the sidelines after Thursday’s quick advance halted marginally near the 200-period simple moving average (SMA) at 1.1300 as it did earlier this month.

The stochastics have exited the overbought territory, while the RSI, although above 50, has a negative slope, both reflecting a weakening market sentiment as investors await more details on a potential budget U-turn by the UK prime minister.

Sellers, however, may not take charge unless the price slips below the 23.6% Fibonacci retracement of the 1.0324 – 1.1494 upleg at 1.1217. If that happens, the pair may next visit the 38.2% Fibonacci of 1.1045, which is currently intersecting the tentative ascending trendline drawn from the record low of 1.0324. Snapping that border, it will then head for the 50% Fibonacci of 1.0975.
In case downside pressures fade immediately, the price may push for a close above the 1.1300–1.1380 resistance region. If it succeeds, the door will open for October’s peak of 1.1494. Though only a decisive extension above the 1.1565 barrier would bring the long-term tentative descending trendline from March 2022 under examination at 1.1730.

Summarizing, GBPUSD seems to be struggling to sustain buying momentum despite its latest upturn. Nevertheless, a bounce off the 1.1217 level could provide another opportunity for the pair to recoup some lost ground.

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