- GBPUSD declines to its lowest level since May 17
- Momentum indicators ease but remain in positive zones
GBPUSD was in a steady recovery following its bounce off the 2024 bottom of 1.2298, with the price violating both the 50- and 200-day simple moving averages (SMAs). In the near term, although the pair surged to a three-month high of 1.2859, it quickly reversed lower.
Should the pullback extend, the recent support of 1.2655 could act as the first line of defence. Further retreats could cease around 1.2598, a region that held strong both in January and March. Sliding beneath that floor, the price could descend towards the February bottom of 1.2517.
Alternatively, if the bulls manage to erase the latest setback, immediate resistance could be found at the 1.2816-1.2826 range, defined by the most recent peak and the December 2023 high. Failing to halt there, the pair could storm towards the three-month high of 1.2859. A violation of that region could set the stage for the 2024 peak of 1.2892.
Overall, GBPUSD experienced a strong downward move after posting a fresh three-month high. Nevertheless, a break below the 50-day SMA is needed for the short-term outlook to turn bearish.
