GBP/USD Could Struggle To Breakout Above 1.2271

By John Benjamin of Orbex
Thursday, May 21, 2020 5:00 AM EDT

 

GBP/USD is maintaining a steady pace as the recent rally has pushed price to the technical resistance area of 1.2271.

The strong hidden divergence on the Stochastics points to a possible correction lower.

Given that GBP/USD has formed a bottom near 1.2100, this could be the downside in the currency pair.

But, we expect price action to remain range-bound within 1.2271 and 1.2100 in the short term.

Any breakout above 1.2271 will, of course, need to see a higher low forming above this level to validate any further upside gains.

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Disclaimer: Orbex LIMITED is a fully licensed and Regulated Cyprus Investment Firm (CIF) governed and supervised by the Cyprus Securities and Exchange Commission (CySEC) (License Number 124/10). ...

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