- GBP/USD is reporting losses, having rallied for a fourth straight day on Friday.
- The pair is still holding above the 50-hour moving average – a level that consistently reversed pullbacks during the recent rally.
- A break below the 50-hour MA could yield a deeper pullback.
GBP/USD is flashing red in Asia, possibly due to waning Brexit optimism, but the bias remains bullish with the key MA support still intact.
The currency pair is currently trading at 1.2911, representing a 0.48% loss on the day, having hit a low of 1.2874 a few minutes before press time.
Focus 50-hour MA support
GBP/USD created bullish higher lows at the 50-hour moving average (MA) throughout the recent rally from 1.22 to 1.2990.
Put simply, the 50-hour MA consistently reversed pullbacks and is the level to beat for the bears.
As of writing, the pair is trading above the 50-hour MA support at 1.2868. The outlook, therefore, remains bullish.
However, a break below the key average, if confirmed, would validate the overbought conditions signaled by the 14-day relative strength index and could yield a quick move lower to 1.2750.
Hourly chart
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Trend: Bearish below 50-hour MA
Technical levels
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