GBP/USD remains above MA (200) H1

There is a correction on the hourly chart of GBP/USD today after the recent impulse growth. The price dropped to the level of 1.3360 after reaching a local maximum around 1.3450. It is important to note that the pair is approaching the 1.3340 support level, which also coincides with the MA (200) H1 moving average area, which acts as dynamic support. In case of a breakdown downwards, the next significant support will be the 1.3275 level.

The MACD indicator shows a decrease: the histogram has dropped below the zero mark, which indicates a weakening of the upward momentum and the possible formation of a downward movement in the short term. So far, there are no reversal signals, and if the price stays above 1.3340, a rebound and an attempt to restore growth are possible. Otherwise, a breakdown below may accelerate the correction.

The overall picture points to short-term bull weakness, while the long-term uptrend remains in force as long as the price is trading above MA (200) H1.

Resistance levels are: 1.3450, 1.3530, 1.3650

Support levels are: 1.3340, 1.3275, 1.3200

The main scenario for the pair's advance suggests a breakout of 1.3450 (April 28-29 high) and there may be an increase to 1.3530 (January 26’ 2022 high).

An alternative scenario implies a breakout of MA (200) H1 (1.3340), a decline to 1.3275 (April 25 low) and then maybe to 1.3200 (April 3 high, April 17 low).