- GBP/USD holds trendline rising from Sept. 23 lows.
- Indicators, howver, are yet to adopt a bull bias.
GBP/USD is currently trading at 1.2994, having hit a low of 1.2916 Wednesday.
The daily chart shows the bulls managed to defend the ascending trendline connecting Sept. 23 and Oct. 16 lows on Wednesday despite the coronavirus-induced risk aversion and increased haven demand for the dollar.
However, it is still early to call a bullish revival. That’s because both the 14-day relative strength index is biased neutral at 50, while the MACD histogram is looking to crossover into a bearish territory below zero.
Besides, the pair is yet to clear Wednesday’s high of 1.3064. A close above would validate the bullish trendline’s defense and confirm a reversal higher, exposing the Oct. 21 high of 1.3177.
Alternatively, acceptance below Wednesday’s low of 1.2916 would shift the focus to the 200-day simple moving average at 1.2706.
Daily chart
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Trend: Neutral
Technical levels
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