After Downside Protection, GBPUSD Regain Traction Towards the 1.2300 Level

GBPUSD Price Analysis – May 20

The Pound Sterling has been on Wednesday’s back foot and intensified lower after an analysis showed Britain’s inflation dropped sharply in April, striking the lowest as of 2016 due to an interruption by the coronavirus. The weakness was, however, protected by the 1.2240 regions as GBPUSD regains traction towards the 1.2300 level.

Key Levels
Resistance Levels: 1.3200, 1.2647, 1.2350
Support Levels: 1.2075, 1.1792, 1.1409

GBPUSD Long term Trend: Ranging

GBPUSD runs underneath the moving average of 13 as seen in the daily chart, indicating a bearish bias as the market is marginally rebounding from 6-week lows. Recognize that the support cluster founded by a range of 1.2163/1.2247 levels confronts the currency pair.  

Once the support and resistance offered remain, the pair may probably stabilize in the short run. Similarly, once the specified resistance does not hold it is probable that within the following trading session the exchange rate may attain the weekly R1 at the 1.2350 thresholds.

GBPUSD Short term Trend: Bearish

GBPUSD reacts even though the spot on the four-hour chart is still trading beneath the main horizontal level at 1.2350. Presently the market is constrained by a level of 1.2300 beyond the moving average of 5.

Since the underlying trend is down on the 4-hour time frame, bears may return soon and attempt to push prices beneath the 1.2200 marks on the way to the 1.2075 level. A strong breach beyond 1.2300 level, on the other hand, may offer further but minimal progress. Resistance levels can be seen close to 1.2412 and 1.2520.

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