GBPUSD Low-Level Rebound Falters Around 1.1658 as Risk Remains Skewed to the Downside

GBPUSD Low-Level Rebound Falters Around 1.1658 as Risk Remains Skewed to the Downside

GBPUSD Price Analysis – March 22

The GBPUSD pair exited in the green on Friday but had come from a fresh multi-decade low of 1.1409 level. The pair plunged for a second consecutive week, as the response to the coronavirus outbreak from the UK government came too late. The greenback stays high on the market while the pound stays under pressure, influenced by risk aversion, on the contrary.

Key Levels
Resistance Levels: 1.3280, 1.2582, 1.2129
Support Levels: 1.1409, 1.1235, 1.0273

GBPUSD Long term Trend: Bearish

The GBPUSD pair has settled past the 1.1600 levels but far beneath the high level of its Friday at 1.1933 level while on the daily chart it displays that technical indicators have recovered modestly from severe levels but still in oversold territory, quite well beneath the moving averages, keeping the danger skewed to the downside.

The downward trend from the level 1.3514 (high) has persisted in the larger structure. The next long-term goal would be a forecast of 61.8 percent from 1.3514 to 1.0273 to 1.3280 to 1.1792 levels where in either case, in case of a strong recovery, the trend may stay bearish as long as 1.3514 resistance level holds.

GBPUSD Short term Trend: Bearish

The pair have struggled to recover above a bearish moving average of 5 in the 4-hour chart, currently at 1.1800 level, although technical indicators stay within negative ranges, the momentum is advancing but the RSI is going down to 40.

Last week’s fall in GBPUSD accelerated to a level of 1.1409, then developed a temporary low there and recovered. For consolidations first, the initial bias stays neutral this week. But a 1.2129 minor level of resistance may contain recovery to bring about a resumption of the fall.

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Author : Azeez Mustapha

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Azeez Mustapha is an experienced author, trader, markets analyst, signals strategist, and funds-manager.