Market news
16.05.2022, 00:19

GBP/USD Price Analysis: Attempts to surpass crucial resistance at 1.2260

  • The cable is attempting to overstep its potential resistance at 1.2266.
  • An establishment above the 50-EMA adds to the upside filters.
  • The RSI (14) is trading back and forth in a 40.00-60.00 range, which signals a rangebound move.

The GBP/USD pair is displaying back and forth moves in a narrow range of 1.2236-1.2266 in the early Tokyo session. The asset has been gradually scaling higher after hitting a low of 1.2173 on Friday as risk-perceived currencies found significant interest.

An upside break of the cable from its previous range of 1.2173-1.2248 has underpinned the pound against the greenback. The pair is hovering near its crucial horizontal resistance placed from May 9 high at 1.2262. The trendline placed from March 5 high at 1.2663, adjoining the previous week’s high a 1.2400 will act as a major barricade ahead.

An establishment above the 50-period Exponential Moving Average (EMA) at 1.2233 is advocating bulls for further upside. However, the asset is still lower from 200-EMA at 1.2340, which signals that a downside bias persists.

The momentum oscillator, Relative Strength Index (RSI) (14) is oscillating in a 40.00-60.00 range, which signals a directionless move going forward.

Investors should consider a bullish move in the asset if it oversteps the above-mentioned trendline at 1.2300. This will send the asset towards the previous week’s high at 1.2400, followed by May 9 high at 1.2662.

Alternatively, greenback bulls could regain control if the asset drops below Friday’s low at 1.2173, which will send the asset towards the 18 May 2020 low at 1.2075. A breach of the latter will drag the cable towards 25 March 2020 high at 1.1973.

GBP/USD hourly chart

 

© 2000-2022. All rights reserved.

This site is managed by Teletrade D.J. Limited 20599 IBC 2012 (First Floor, First St. Vincent Bank Ltd Building, James Street, Kingstown, St. Vincent and the Grenadines).

The information on this website is for informational purposes only and does not constitute any investment advice.

AML Website Summary

Risk Disclosure

Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.

Privacy Policy

Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.

Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.

Feedback
Live Chat E-mail
Up
Choose your language / location