tradingkey.logo

GBP/USD Price Analysis: Rises to 1.2700 nearing 14-day EMA

Jun 25, 2024 4:46 AM
  • GBP/USD extends gains to test 14-day EMA at 1.2704 level.
  • A broadening bottom pattern on a daily chart suggests a potential correction before moving lower.
  • The lower boundary of the broadening bottom pattern around the level of 1.2640 could act as a key support.

GBP/USD extends gains for the second successive session, trading around 1.2700 during Asian hours on Tuesday. Analysis of the daily chart shows a broadening bottom pattern in price action, representing increasing volatility. This chart pattern suggests a potential correction before moving lower.

The 14-day Relative Strength Index (RSI) is positioned below the 50 level, indicating a bearish bias. Furthermore, the Moving Average Convergence Divergence (MACD) momentum indicator also suggests a downward trend, as the MACD line is above the centerline but diverges below the signal line. Breaking below the centerline may strengthen the downward trend.

To the downside, the GBP/USD pair may find key support at the bottom wedge of the broadening bottom pattern around the level of 1.2640. A break below this level could exert pressure on the pair to navigate the vicinity of the throwback support at 1.2450.

In terms of resistance, the immediate barrier appears at the 14-day Exponential Moving Average (EMA) at the 1.2704 level. A breakthrough above this level could propel the GBP/USD pair toward testing the top wedge of the broadening bottom pattern around 1.2900.

GBP/USD: Daily Chart

GBP/USD

Overview
Today last price 1.2692
Today Daily Change 0.0007
Today Daily Change % 0.06
Today daily open 1.2685
 
Trends
Daily SMA20 1.2733
Daily SMA50 1.2629
Daily SMA100 1.2641
Daily SMA200 1.2558
 
Levels
Previous Daily High 1.2698
Previous Daily Low 1.2633
Previous Weekly High 1.274
Previous Weekly Low 1.2623
Previous Monthly High 1.2801
Previous Monthly Low 1.2446
Daily Fibonacci 38.2% 1.2673
Daily Fibonacci 61.8% 1.2658
Daily Pivot Point S1 1.2646
Daily Pivot Point S2 1.2607
Daily Pivot Point S3 1.2581
Daily Pivot Point R1 1.2711
Daily Pivot Point R2 1.2737
Daily Pivot Point R3 1.2776
Disclaimer: The content of this article solely represents the author's personal opinions and does not reflect the official stance of Tradingkey. It should not be considered as investment advice. The article is intended for reference purposes only, and readers should not base any investment decisions solely on its content. Tradingkey bears no responsibility for any trading outcomes resulting from reliance on this article. Furthermore, Tradingkey cannot guarantee the accuracy of the article's content. Before making any investment decisions, it is advisable to consult an independent financial advisor to fully understand the associated risks.

Related Instruments

Recommended Articles

tradingkey.logo
tradingkey.logo
Intraday Data provided by Refinitiv and subject to terms of use. Historical and current end-of-day data provided by Refinitiv. All quotes are in local exchange time. Real-time last sale data for U.S. stock quotes reflect trades reported through Nasdaq only. Intraday data delayed at least 15 minutes or per exchange requirements.
* References, analysis, and trading strategies are provided by the third-party provider, Trading Central, and the point of view is based on the independent assessment and judgement of the analyst, without considering the investment objectives and financial situation of the investors.
Risk Warning: Our Website and Mobile App provides only general information on certain investment products. Finsights does not provide, and the provision of such information must not be construed as Finsights providing, financial advice or recommendation for any investment product.
Investment products are subject to significant investment risks, including the possible loss of the principal amount invested and may not be suitable for everyone. Past performance of investment products is not indicative of their future performance.
Finsights may allow third party advertisers or affiliates to place or deliver advertisements on our Website or Mobile App or any part thereof and may be compensated by them based on your interaction with the advertisements.
© Copyright: FINSIGHTS MEDIA PTE. LTD. All Rights Reserved.