Bullish Potential Stays Restrained on GBPUSD After a Retreat From High at 1.2400 Level

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Azeez Mustapha

Updated: 13 October 2022

GBPUSD Price Analysis – May 31

In the previous session, the GBPUSD pair hit 1.2395 level, a two-week high, pulling back rapidly from the level to regain afterward on recovery and getting stuck at 1.2345 level. By the close of the week, the UK had not provided macroeconomic data with the emphasis now on Brexit deal and emerging trends in coronavirus. Besides that, this week’s concluding round of UK-EU dialogue is set to take place.

Key Levels
Resistance Levels: 1.3514, 1.2647, 1.2412
Support Levels: 1.2075, 1.1792, 1.1409

GBPUSD Long term Trend: Ranging
The GBPUSD pair may have ended the week with growth but as per the daily chart, the bullish impact is constrained. The rebound from Sterling’s low level of 1.2247 hit two-week highs at 1.2395 level. That being said, the pair could not stabilize at those levels and tumbled down to level 1.2345.

In the wider context, although the turnaround from level 1.1409 is positive, there is still no confirmation of trend reversal. In whichever way, in case of a strong rebound, the trend may even stay bearish as long as 1.3514 resistance level holds intact.

GBPUSD Short term Trend: Ranging
GBPUSD’s 1.2075-level rebound advanced higher last week and this week’s initial trend stays on the upside. The latest trends assert that the 1.1409 rebounds may still be underway.

Another rally can be seen at a level of 1.2647 and a break can reach a forecast of 61.8 percent from 1.1409 to 1.2647 from 1.2075 to 1.2725 levels next. That being said, on the downside beneath 1.2247 minor support level may instead alter bias back to the downside at 1.2075 level.

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