Investing.com - Financial Markets Worldwide
Get 40% Off
Get 40% Off
These stocks are up over 10% post earnings. Did you spot the buying opportunity? Our AI did.Read how

GBP/USD Calls For Bullish Reversal Near 1.3670 Support

ByXM Group
AuthorTrading Point
Published 04/13/2021, 07:27 AM
Updated 05/01/2024, 03:15 AM

GBPUSD could be due for an upside correction following the stabilization near the key 1.3670 support region.
Even though the new bearish cross between the 20- and 50-day simple moving averages (SMAs), which is the first since September, suggests the continuation of the short-term downtrend, the RSI is regaining ground towards its 50 neutral level. Meanwhile, the Stochastics have already set up a bullish cross below the 20 oversold mark, signaling a pickup in positive momentum.
The 1.3755 – 1.3777 area has been rejecting upside movements over the past few sessions, therefore a clear breach of that wall may bring new buyers into the market, likely sending the price towards the upper line of the descending channel around 1.3860, where the 50-day SMA is also positioned. Running higher, the bulls may take a rest within the 1.3900 – 1.3950 area before a tougher battle takes place near the 1.4000 hurdle. Additional gains from here would push for an uptrend resumption beyond 1.4135.
Otherwise, a decisive close below the floor of 1.3670 may stretch towards the bottom of the channel, likely charting a new lower low within the 1.3600 – 1.3560 region. Traders will also pay great attention to the crucial zone of 1.3500 - 1.3480, where any violation would put the price back below the 2019 and 2020 highs, neutralizing the long-term outlook.

In brief, GBPUSD may attempt to recover some losses in the near term, although the trend signals remain bearish. For a meaningful rebound, the pair should cross above the downward-sloping channel and the 1.3870 level.GBPUSD

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Latest comments

Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.