- GBP / USD remains slightly positive above the monthly support line (previous resistance).
- The top 08 may attract buyers beyond 50 SMA days.
- Fibonacci’s low monthly retracements can keep sellers hopeful for further declines.
Despite the decline in the SMA to 50 days the day before, GBP / USD broke the monthly downtrend line while bringing offers close to 1.2260 at the start of Wednesday.
That said, the pair aims to challenge the May 08 high of 1.2467 beyond the immediate resistance of 1.2283 including 50-day SMA.
During the further rise in price above 1.2467, the highs marked in April around 1.2640 / 50 will be key.
Meanwhile, the pair’s declines below the resistance line that became support at 1,236 can refresh the monthly low of 1.2075.
However, a 50% and 61.8% Fibonacci retracement of the pair’s March-April increase, around 1.2025 and 1.1880 respectively, can verify declines below 1.2075.
GBP / USD daily chart
Trend: expected decline