After holding above 1.20 psychological level, GBPUSD could extended its rebounding to 1.2308, before coming under emerging downside pressure drove it to 1.2156.
GBPUSD is trying now to stabilize again near 1.22 in its eleventh day of being above its daily Parabolic SAR (step 0.02, maximum 0.2) which is reading today 1.2153.
GBPUSD lower high at 1.2308 came well below its daily SMA50, its daily SMA100 and its daily SMA200 as the previous lower highs at 1.2578 and 1.2785 forming another dovish sign.
GBPUSD daily RSI-14 is now referring to lower existence inside the neutral area reading 47.522.
GBPUSD daily Stochastic Oscillator (5, 3, 3) which is more sensitive to the volatility is still having its main line inside its neutral territory at 59.102 leading to the downside its signal line which is higher inside this same region reading 70.744.
This relatively big discrepancy between the leading main line and the signal line expresses about the higher downside momentum the pair faced recently, after negative crossover inside its overbought territory above 80 on forming 1.2308 lower high last Tuesday.
Important levels: Daily SMA50 @ 1.2361, Daily SMA100 @ 1.2593 and Daily SMA200 @ 1.2765
Experienced S&R:
S1: 1.2156
S2: 1.2015
S3: 1.1986
R1: 1.2308
R2: 1.2578
R3: 1.2785
Kind Regards
Global Market Strategist of FX-Recommends
Walid Salah El Din