GBPUSD Reassesses Support Levels Amidst Building Bearish Momentu
The GBPUSD pair is currently contending with downward pressure as it approaches recent lows near 1.2603. This downward move has caused the currency pair to slide below the 200-hour moving average, standing at 1.26212. Sustaining positions below this moving average may continue to empower sellers.
However, there's a noteworthy support zone ranging from 1.2589 to 1.2602. A decisive break below this range could amplify the bearish sentiment. Should this occur, the next significant target for traders would be the 38.2% retracement of the November trading range, situated at 1.25240. This level holds particular significance following the prominent downtrend observed in November; breaching this retracement level is crucial to confirm seller dominance. The next downward momentum could focus on the convergence of the 100 and 200-day moving averages around 1.2475.
Conversely, if the support zone between 1.2589 and 1.2602 holds firm, and prices bounce back above the 200-hour moving average at 1.26212, it could provide assurance to buyers that the short-term low might have been established. In this scenario, the next bullish target would be the 100-hour moving average at 1.26714, offering potential for a reversal in the currency pair's direction.
However, there's a noteworthy support zone ranging from 1.2589 to 1.2602. A decisive break below this range could amplify the bearish sentiment. Should this occur, the next significant target for traders would be the 38.2% retracement of the November trading range, situated at 1.25240. This level holds particular significance following the prominent downtrend observed in November; breaching this retracement level is crucial to confirm seller dominance. The next downward momentum could focus on the convergence of the 100 and 200-day moving averages around 1.2475.
Conversely, if the support zone between 1.2589 and 1.2602 holds firm, and prices bounce back above the 200-hour moving average at 1.26212, it could provide assurance to buyers that the short-term low might have been established. In this scenario, the next bullish target would be the 100-hour moving average at 1.26714, offering potential for a reversal in the currency pair's direction.
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