- The GBP/USD has eroded the rising trendline, as seen in the 4-hour chart below, signaling the corrective rally from the low of 1.2662 has made a temporary top at 1.3043.
- Further, the rejection at the downward sloping (bearish) 50-day moving average (MA) on Aug. 30 and a close below the 10-day MA yesterday, as seen in the daily chart, indicates a bearish reversal. As a result, the spot could find acceptance below the immediate support of 1.28 (Aug. 24 low) today and that would open the doors to re-test of the recent low of 1.2662.
- On the higher side, a daily close above the 50-day MA, currently located at 1.3018, is needed to confirm a bullish reversal.
4-hour chart
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Spot Rate: 1.2850
Daily High: 1.2876
Daily Low: 1.2841
Trend: Bearish
R1: 1.2876 (daily high)
R2: 1.2919 (50-hour MA)
R3: 1.3018 (50-day MA)
Support
S1: 1.28 (Aug. 24 low)
S2: 1.2723 (Aug. 10 low)
S3: 1.2662 (Aug. 15 low)
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