- November 19, 2020
- Posted by: Analysis Team
- Category: Forex News
- GBP/USD stalls the decline, not out of the woods yet.
- Ascending triangle breakdown confirmed on the 4H chart.
- Bullish RSI points north keeping buyers hopeful.
GBP/USD attempts a bounce in European trading, looking to regain 1.3250 amid a minor recovery in the risk sentiment on fresh vaccine news from AstraZeneca and Oxford University.
- AstraZeneca and Oxford University: Confirms immune response in elderly, phase 3 vaccine trial results in weeks
The cable fell sharply from above 1.3300 in early Asia after The Times reported that the European Union (EU) are planning to push for no-deal Brexit “amid fears that Brexit negotiations are dragging on without businesses knowing what they need to prepare for in the worst scenario.”
From a technical perspective, with the Relative Strength Index (RSI) pointing north while holding in the bullish region at 53.07 on the four-hour (4H) chart, remains suggestive of a likely rebound.
However, the path of least resistance for the spot appears to the downside following an ascending triangle breakdown confirmed on the said timeframe earlier in the Asian session.
The immediate support awaits at the upward-sloping 50-simple moving average (SMA) at 1.3211, below which a test of the weekly low of 1.3106 is on the cards.
Alternatively, closing on the four-hour basis above the 21-SMA of 1.3240 is needed to building the recovery momentum.
The next upside target is aligned at 1.3313, the November 11 and November 18 highs.
GBP/USD: 4H-HOUR CHART
GBP/USD: Additional levels