Gbpusd Slips On Correction

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Gbpusd Slips On Correction

Gbp/Usd Slips Under 1.3000, Signs Of Possible Correction

GBP/USD is trading near 1.2970 and shows signs of a possible correction on Monday. On Friday, the GBP/USD pair managed to touch the 1.2990 but has since moved lower on Monday.

The 1.2990 handle was one of the highest levels for the pair since July 2023. So, it makes sense for the GBP/USD to move a little lower as a sign of correction.

Gbp/Usd Breaks Out Of Ascending Channel

On the GBP/USD D1 chart, we can see a bullish breakout from the ascending channel. Now, it can mean two things: The price will either retreat and move back into the ascending channel or the price will turn higher and start trading in a price channel.

Additionally, the MACD indicator shows the presence of bullish momentum in the short term while the MACD line is also above the center line.

However, the RSI is printing just above 70, which shows that the GBP/USD is now in the overbought territory. Given that the GBP/USD has already retreated a few pips, the RSI will also move lower.

According to currency experts, the GBP/USD pair can move higher and test the 1.3000 level once again. If the GBP/USD can manage to break it, it will become a solid support and will serve as a base for the next target at 1.3100.

On the way down, the immediate support is at the 1.2900 which is also the upper line of the ascending channel. If the GBP/USD returns back to the upper line of the ascending channel, it will serve as a support and allow the pair to target the 9 EMA once again.

If the GBP/USD breaks below the 9 EMA, it will mean the next bearish target for the pair is around 1.2770. After that, the next support is located at 1.2615 which can also stop the GBP sellers from turning even lower.

Overall, the GBP/USD is trading with a short-term bearish bias on the smaller timeframes while the medium & long-term trend remains in favor of the GBP.

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