- GBP/USD fails to retain the weekly gains around 1.24 as it falls back in the downward trading loop of 1.23 and 1.22.
- Pound failed to retain support from 50-day daily MA around 1.24 due to the weekly pullback against the US Dollar.
- The pair hit the double top at 1.26 on the last day of the previous month after 2 weeks of downward consolidation.
- Moreover, GBP/USD also fails to regain the lost 200-day MA support on the 12-hourly chart.
- The MACD on the 12-hourly chart appears flat while the RSI just rose after hitting 30 and lies at 41.01, at the press time.
- The pair has drifted below the subtle uptrend as it retests April lows.
- A rise above 1.23 is necessary to let the pair gain some meaningful support, while on the contrary, there will be strong resistance for the price to cross above 1.230 price area persistently.
- A successful reclaim above 1.240 price will happen only when Pound clears the resistance around 1.230 and 1.2350 which seems impossible before the weekend, due to the current breakdown on the intraday chart
- The GBP/USD lost the gains of May 11, 2020, i.e., Monday’s trading session due to lack of support against the intraday pullback
- As the technicals appear negative, the major support to look out for lies at 1.220 and 1.215 if the price of Pound fails to rebound against the US Dollar
- Similarly, the major resistance to clear lies at 1.23 and 1.235, as discussed above.
- Moreover, to break the ongoing limited range price oscillation, Pound will have to retreat above 1.26 in the near-term against the greenback.