Pullback remains elusive beyond 1.3465

  • GBP/USD seesaws near two-month high, inside bearish chart pattern.
  • 50-SMA adds strength to the rising wedge’s support around 1.3465.
  • Wedge’s resistance, seven-week-old horizontal line guard short-term upside.
  • RSI, MACD join sustained trading beyond the key SMA to favor bulls.

GBP/USD keeps the previous day’s pullback from a two-month high of around 1.3530 during the inactive initial Asian session on Wednesday.

The cable pair refreshed the multi-day top the previous day while justifying MACD rebound and firmer RSI line. However, a 12-day-old rising wedge challenges the buyers.

Even so, the sellers may wait for a confirmation of the bearish chart pattern before taking a fresh entry. The 50-SMA level around 1.3465 increases hardships for the bear’s arrival.

In a case where the quote drops below 1.3465, the 200-SMA level near 1.3330 will offer an intermediate halt during the expected south-run targeting December 2021 low of 1.3160.

On the flip side, GBP/USD buyers can aim for the wedge’s resistance line and multi-day-old horizontal hurdle surrounding 1.3610 during further advances.

Following that, November’s high of 1.3697 and October’s peak surrounding 1.3835 will be in focus.

GBP/USD: Four-hour chart

Trend: Further upside expected


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