Home GBP/USD technical analysis: Tests long-term falling wedge support amid oversold RSI
FXStreet News

GBP/USD technical analysis: Tests long-term falling wedge support amid oversold RSI

  • 25-month old descending trend-line, forming part of a falling wedge, can limit GBP/USD declines amid oversold RSI conditions.
  • 1.2580, 23.6% Fibonacci retracement limit immediate advances.

Despite falling to the lowest since early 2017, the GBP/USD’s further declines seem confined as it takes the rounds to 1.2365 while heading into the UK open on Monday.

A downward sloping trend-line since June 2017, at 1.2363 now, offers key immediate support for the pair, a break of which can defy the long-term bullish formation and can further please bears with March 2017 low around 1.2110.

Also challenging the declines is oversold conditions of 14-day relative strength index (RSI).

On the upside, the quote should successfully overcome mid-month tops close to 1.2580 in order to push buyers towards 23.6% Fibonacci retracement of 2015 swing high to 2016 swing low, at 1.2773.

GBP/USD weekly chart

Trend: Bearish

 

FX Street

FX Street

FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions.