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GBP/USD set-up seems tilted in favour of bears and supports prospects for a further slide, Haresh Menghani, an analyst at FXStreet, informs.

Key quotes

“The convergence of 50-day SMA and 200-day SMA points to the increasing possibility of a bearish death-cross on the daily chart. The set-up indicates that the recent strong recovery from 35-year lows might have already run out of the steam and thus, supports prospects for the resumption of the pair’s prior/well-established bearish trend.”

“It will be prudent to wait for a sustained break below the 1.2200 round-figure mark before positioning for a further near-term depreciating move towards challenging the 1.2100 mark en-route the 1.2075-70 support zone.”

“On the flip side, the 1.2300 round-figure mark now seems to act as immediate resistance and any subsequent positive move is likely to confront some fresh supply near the 1.2375-80 region.”