- GBP / USD extends the withdrawal of 1.2616, takes a look at 100-HMA in further declines.
- The April high will validate the pair’s strength beyond the recent high.
- A sustained break below 200-HMA will challenge the pair’s bulls.
GBP / USD fell to 1.2556, down 0.14% overnight, in the middle of Thursday morning’s Asian session. The pair recently crossed the immediate support line while falling from the highest since April 30.
As a result, the quote is expected to remain bearish and may extend the fall to a 100-HMA level of 1.2468 during further declines.
However, the 200-HMA near 1.2360 could limit the further weakness of the pair beyond 1.2468, otherwise the bears could challenge the previous month’s low around 1.2075.
Alternatively, an upward clearance from the recent peak of 1.2616 will have to cross the April 30 peak around 1.2650 to justify the strength of the bulls.
In doing so, optimists could aim for a low in February near 1.2725 / 30 to encourage the northern direction.
GBP / USD Hourly Chart
Trend: expected decline