- GBPUSD advances to its highest level since March 13
- But then reverses lower as rally got overstretched
- Momentum indicators ease but remain in positive zones
GBPUSD has been in a steady recovery following its bounce off the 2024 bottom of 1.2298, with the price violating both the 50- and 200-day simple moving averages (SMAs). In the near term, although the pair surged to an almost three-month high, it sustained some losses probably due to some profit taking.
Should the pullback extend, the recent support of 1.2669 could act as the first line of defence. Further retreats could cease around 1.2598, a region that held strong both in January and March. Sliding beneath that floor, the price could descend towards the February bottom of 1.2517.
If the bulls manage to erase the latest setback, immediate resistance could be found at the 1.2816-1.2826 range, defined by the most recent peak and the December 2023 high. A violation of that region could set the stage for the 2024 peak of 1.2892. Failing to halt there, the pair could storm towards the July 2023 resistance of 1.2994.
Overall, GBPUSD climbed to an almost three-month high last week before paring some gains. Nevertheless, a break below the 50-day SMA is needed for the short-term outlook to turn bearish.
. In the near term, although the pair surged to an almost three-month high, it sustained some losses probably due to some profit taking. ){kind=link}