GBP/USD Reaches an Oversold Region as It May Turn Around at Level 1.2078

GBP/USD Long-Term Analysis: Bullish
The GBP/USD pair is currently on an upward trend as it may turn around at level 1.2078. The Pound is retracing as it finds support above the 21-day line SMA. If the pullback ends, the present rise may resume. The positive momentum can regain strength as long as the price retraces above the moving average lines. The current rise may stop if prices fall beneath the moving average lines. As of the time of this writing, the British Pound is worth 1.2140.

GBPUSD Indicator Analysis
According to the Relative Strength Index, the Pound has increased to level 54 for period 14. Despite the prior retracement, the pair is in the bullish trend zone. The moving average lines are above the currency price bars, indicating a likely increase. Below the daily Stochastic’s level 20, the Pound is experiencing a bearish momentum. This suggests that bearish exhaustion has been achieved in terms of selling pressure.

Technical indicators:
Major Resistance Levels – 1.2800, 1.2900, 1.3000
Major Support Levels – 1.1900, 1.1800, 1.1700

What Is the Next Direction for GBP/USD?
As buyers show up in the oversold area of the market, the Pound may turn around at level 1.2078. The Pound performed an upward corrective during the December 15 downturn, and a candle body tested the 78.6% Fibonacci retracement level. The correction suggests that the Pound will decline, but that it will turn around level 1.2078 or the Fibonacci extension of 1.272.

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