Gbpusd Revisits Resistance

 Gbpusd Revisits Resistance

Gbp/Usd Revisits 1.2500 Level On Risk-Averse Theme

GBP/USD has changed its direction and climbed above the 1.2500 handle. Earlier, the GBP/USD was seen near the 1.2450 level, but it seems that the disappointing GDP data from the USA has provided it with a much-needed push.

Despite the upside seen in the GBP/USD, the market's mood is still risk averse as the USD is struggling to find ample demand. No matter how someone looks at the US GDP data, it was not good at all.

Gbp/Usd Faces Resistance At 1.2560

For now, the GBP/USD is trading comfortably above the 1.2500 handle, but it appears to be trapped in a descending price channel. The upper limit of this channel is also considered with the 100 SMA on the H4 chart. This means the GBP/USD needs to close beyond this level to convert it into support.

Once this happens, the next stop for the GBP/USD will be at 1.2560 where the 20 SMA on the D1 chart is located. After that, the GBP/USD will experience smooth sailing with the next levels at 1.26, 1.265, and 1.27.

However, if the GBP/USD fails to find sufficient demand above the 1.25 handle, it will mean bad news for the GBP bulls. In that case, the nearest support at 1.2450 will likely be revisited once again, followed by 1.2430 and 1.2400.

However, the GBP/USD appears to be on a winning streak as it has closed the 2nd day in the green. Another thing that hints at more upside is the fact that the GBP/USD pair has closed positively above 1.25 for the first time in almost 2-weeks period.

In the USA, the stock markets appear to be struggling after the release of disappointing data from the Meta Platforms. So, that's also a factor that is weighing heavily on the US stock index futures and is allowing the GBP/USD to shine.

Overall, the short-term momentum favors a bullish GBP/USD while the long-term trend is still bearish until the 200 SMA is conquered by the bulls.

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