Extends bounce off 50-DMA towards 1.1400

  • November 10, 2022
  • GBPUSD picks up bids to refresh intraday high, pares the biggest daily loss in a week.
  • Sluggish MACD, RSI suggests further hardships for buyers unless crossing two-month-old resistance line.
  • Ascending trend line from early October adds to the downside filters.

GBPUSD stretches the late Wednesday’s rebound from 50-DMA towards 1.1400 during early Thursday, around 1.1385 by the press time. In doing so, the Cable pair also consolidates the biggest daily slump in one week, marked the previous day.

However, sluggish MACD and RSI (14) conditions challenge the quote’s latest recovery, which in turn highlights the two-month-old descending resistance line, around 1.1600.

Even if the GBPUSD buyers manage to cross the 1.1600 hurdle, the tops marked during October and September, at around 1.1645 and 1.1740 in that order, could restrict the pair’s further advances.

Meanwhile, 50-DMA puts a floor under the GBPUSD prices around 1.1320, a break of which could direct the bears towards an upward-sloping support line from early October, close to 1.1200 by the press time.

It’s worth noting that the monthly low and October’s bottom, respectively around 1.1150 and 1.0925, act as the additional downside filters to watch during the pair’s additional weakness.

Overall, the GBPUSD pair’s trend remains elusive unless it stays between 1.1200 and 1.1600. However, the short-term recovery can’t be ruled out.

GBPUSD: Daily chart

Trend: Limited upside expected