- March 29, 2021
- Posted by: Analysis Team
- Category: Forex News
- GBP/USD bulls catch a breather after two-day uptrend.
- Normal RSI conditions back bounce off 10-week-old support line, 50% Fibonacci retracement.
- Falling trend line from February 24 offers an extra hurdle to the north.
GBP/USD cools down after two consecutive days of upside, takes rounds to 1.3800 during Monday’s Asian session. In doing so, the quote fails to extend the last week’s recovery from an ascending trend line from January 18 and a 50% Fibonacci retracement level of run-up from December 11, 2020, to February 24, 2021.
Given the RSI staying firm around 45.00, the quote’s run-up targeting 50-day SMA, near 1.3840, can’t be ruled out. However, a clear break above this will have to cross a one-month-long resistance line, at 1.3887 by the press time, to recall the GBP/USD bulls.
Following that, the 1.4000 threshold and the monthly top surrounding 1.4020 should offer intermediate halts before propelling the quote to February’s peak near 1.4245.
Alternatively, a confluence of the stated support line and 50% Fibonacci retracement level near 1.3685-80 becomes a tough nut to crack for the GBP/USD bears.
While a downside break of 1.3680 can direct the cable to the south towards a 61.8% Fibonacci retracement level of 1.3556, any further weakness will be tamed by the yearly bottom surrounding 1.3450.
GBP/USD DAILY CHART