GBPUSD trades around an intraday high, extending the previous day’s recovery from a two-month low.
GBPUSD pares monthly losses, the first in three months, at 1.2360 early Monday as markets in the UK and the US remain closed for Memorial Day.
As a result, the Cable pair extends the previous day’s rebound from the lowest levels since early April, while the US Dollar declines from a multi-day high despite the Biden-McCarthy debt ceiling pact.
Having stated that, the RSI line’s below 50 levels, situated at 14, joins the 100-Exopnential Moving Average (EMA) to put The Pound Sterling pair has a floor around the 1.2300 round number.
Nonetheless, the bearish MACD signals and the 1.2400 resistance confluence, which includes the 50-EMA and a two-week-old declining trend line, limit the GBPUSD pair’s immediate positive gains.
Following that, the market tops marked in late 2022 and in the past month, at 1.2440 and 1.2585 in that order, might function as the Cable bears’ final defense.
A negative breach of the 100-EMA level near 1.2300, on the other hand, isn’t an open invitation to the Pound Sterling bears, as an upward-sloping support line from November 2022, close to 1.2230, might limit the pair’s further fall. The round number is on its way to meet the early 2023 low of about 1.1840.
