The GBP/USD pair catches aggressive bids on Tuesday and stalls a two-day corrective decline from its highest level since June 2022, around the 1.2545 region touched last week. The pair sticks to its strong intraday gains, around the 1.2435-1.2440 area, through the first half of the European session and for now, seems to have snapped a two-day losing streak to a one-week low set on Monday.

GBP/USD has shifted into a bearish trajectory after a breakdown of the Ascending Triangle chart pattern formed on a two-hour scale. The upward-sloping trendline of the aforementioned chart pattern is plotted from March 24 low at 1.2191 while the horizontal resistance is placed from April 04 high at 1.2525.

The 20-period Exponential Moving Average (EMA) at 1.2404 is acting as a barricade for the Pound Sterling bulls.

It should be noted that the quote’s clear downside break of an upward-sloping support line from March 24, now immediate resistance near 1.2435, joins bearish MACD signals to lure the GBP/USD bears ahead of the key UK statistics. However, the 21-DMA challenges the pair sellers around 1.2375 of late.

Meanwhile, the Relative Strength Index (RSI) (14) is oscillating in the bearish range of 20.00-40.000, indicating the downside momentum is active.

A slippage below April 10 low at 1.2345 will expose the asset to March 30 low at 1.2294 followed by March 27 low at 1.2219.

On the flip side, a recovery move above April 13 high at 1.2537 will drive the asset towards a fresh 10-month high at 1.2597, which is 08 June 2022 high. A breach of the latter will expose the asset to May 27 high at 1.2667.

GBPUSD holding bearish momentum below the TL

Apr 18 2023