GBPUSD Bearish Ride May Set in Beneath 1.2500 Level

GBPUSD Price Analysis – June 14

GBPUSD appears lower as sellers ride the pair down, after a higher-level turnaround that tends to have discovered a high at the level of 1.2812. And once the mood of global risk shifts south further, cable with the UK gets entrenched in the middle of the economic recession.

Key levels
Resistance Levels: 1.3514, 1.3050, 1.2812
Support Levels: 1.2500, 1.2075, 1.1409
GBPUSD Long term Trend: Ranging
GBPUSD crept upward to 1.2812 level last week but established a medium-term high ahead of a forecast of 1.1409 to 1.2647 at 1.2830 levels from 1.2065 and reversed. This week’s initial bias is marginally down. The continuous breach of the ascending trendline support (now at level 1.2412) may suggest that the entire recovery from level 1.1409 has been achieved.

In this scenario, a further collapse may be seen for confirmation to the 1.2065 support level. On the positive side, the lower resistance level beyond 1.2653 may shift bias back to the upside rather than re-test level 1.2812.
GBPUSD Short term Trend: Ranging
Within positive levels, technical indicators ease, all of which imply softening bullish focus. The bearish potential is constrained in the shorter-term, and as per the 4-hour chart, as the pair bounced at 1.2500 from a horizontal support line on the level, while technical indicators rebounded from the over-sold RSI readings.

Nonetheless, on the flip side, the 5 and 13 moving average remains higher than the current level. For the bearish case to lose the appeal, GBPUSD may need to rebound beyond 1.2647 level.

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