GBPUSD Tumbles Amid The Lower UK Inflation Reading

GBPUSD has fallen below 200-period SMA (1.256276) after UK’s inflation reading came in lower-than-expected (Core YoY 5.1% vs 5.2% expected).

Key support levels are positioned at 1.25334 followed by the 100-period SMA below at 1.248789.

Conversely, on the upside key resistance levels positioned at 1.26281, 1.27721 and the 21-period SMA at 1.266021.

The pair’s current positioning (~1.25397) below the key 21, 50 and 200-period SMAs may indicate a bearish sentiment.

The RSI is floating near (~38.66) the lower boundary (30), indicating a potential downward movement.
A move below the 30-line may signal the potential for a technical pullback.

The MACD line which is now below the signal line can, be interpreted as another bearish signal further confirming the bearish momentum.

Looking at the technical indicators, the GBPUSD may continue on the bearish trajectory, with the potential to move below the key support level of 1.25334.

A break below this level may intensify the downward movement towards the 100-period SMA (1.248789).


More By This Author:

Bitcoin Surges Above $50000
Gold Stays Close To 50-Day SMA Ahead Of CPI Signals
Disney To Climb Above $100?

Disclaimer: Forecasts which are made in the review constitute the personal view of the author. Commentaries made do not constitute trade recommendations or guidance for working on financial ...

more
How did you like this article? Let us know so we can better customize your reading experience.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.