GBP/USD Price Analysis: Poised to resume downtrend, despite ‘morning star’ formation
24.04.2024, 14:47

GBP/USD Price Analysis: Poised to resume downtrend, despite ‘morning star’ formation

  • GBP/USD dips slightly as higher US Treasury yields bolster the US Dollar, following upbeat US data.
  • Technical analysis shows GBP/USD at a pivotal point, with the potential to rise toward 1.2500 if it breaks past the April 23 high of 1.2458.
  • Key downside risks include a retreat to 1.2400 and possibly further to the April 22 low of 1.2299 if current resistance holds firm.

The Pound Sterling is experiencing slight losses against the US Dollar, largely due to the influence of high US Treasury yields that are bolstering the Greenback. This trend was fueled by the release of economic data, which showed that Durable Goods exceeded expectations, leading to a surge in US yields and a favorable environment for the USD. The GBP/USD is currently trading at 1.2444, reflecting a 0.04% decrease.

GBP/USD Price Analysis: Technical outlook

After forming a ‘morning star,’ the GBP/USD is set to continue to print gains, but traders must decisively clear the April 23 high at 1.2458, which would pave the way toward 1.2500. Up next, the first crucial resistance level would be the 200-day moving average (DMA) at 1.2561, followed by 1.2600.

On the other hand, if GBP/USD remains constrained by the April 23 high, that could pave the way for a retracement to 1.2400. A decisive break would expose April 22 low at 1.2299, which, once surpassed, could open the door to test an upslope support trendline drawn from March 2023 lows that pass at around 1.2250/60.

GBP/USD Price Action – Daily Chart

GBP/USD

Overview
Today last price 1.2441
Today Daily Change -0.0008
Today Daily Change % -0.06
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

 

 

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