GBP/USD Price Analysis: Rises to near 1.2450 despite the bearish sentiment

FXStreet
Updated Apr 24, 2024 05:24
Mitrade

■  GBP/USD tests the major level of 1.2450 despite the bearish sentiment shown by the technical analysis.

■  The pair continues to trade below the pullback resistance level at 1.2518, positioned near the lower boundary of the descending triangle.

■  The breach into the descending channel around the level of 1.2490 may lead to a weakening of the bearish sentiment.


GBP/USD has been on the rise for the second consecutive day, trading around 1.2450 in Asian trading on Wednesday. However, the pair is still below the pullback resistance at 1.2518, which coincides with the lower boundary of the descending triangle at 1.2510. Furthermore, the 14-day Relative Strength Index (RSI) is below the 50 level, indicating a bearish sentiment.


Additionally, the Moving Average Convergence Divergence (MACD) confirms this bearish trend, with the MACD line below the centerline and the signal line. Looking ahead, GBP/USD could encounter significant support around the psychological level of 1.2400. If this level is breached, the pair may test the five-month low of 1.2300.


On the upside, breaching the descending triangle around the level of 1.2490, along with surpassing the psychological level of 1.2500, could potentially weaken the bearish sentiment. Further resistance is anticipated around the pullback resistance level at 1.2518 and the 38.2% Fibonacci retracement level at 1.2527, drawn between 1.2894 and 1.2300.


A breakthrough above the latter resistance region might signify a shift towards a bullish sentiment. In such a scenario, GBP/USD could aim to test the upper boundary of the descending triangle around 1.2565.


GBP/USD: Daily Chart



GBP/USD


Overview
Today last price 1.2455
Today Daily Change 0.0006
Today Daily Change % 0.05
Today daily open 1.2449
 
Trends
Daily SMA20 1.2538
Daily SMA50 1.2629
Daily SMA100 1.2652
Daily SMA200 1.2563
 
Levels
Previous Daily High 1.2459
Previous Daily Low 1.2332
Previous Weekly High 1.2499
Previous Weekly Low 1.2367
Previous Monthly High 1.2894
Previous Monthly Low 1.2575
Daily Fibonacci 38.2% 1.241
Daily Fibonacci 61.8% 1.238
Daily Pivot Point S1 1.2368
Daily Pivot Point S2 1.2287
Daily Pivot Point S3 1.2241
Daily Pivot Point R1 1.2495
Daily Pivot Point R2 1.254
Daily Pivot Point R3 1.2621

* The content presented above, whether from a third party or not, is considered as general advice only.  This article should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments.

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