GBP/USD Bounces Along 50-Day SMA

GBP/USD failed to defend the opening range for May as it registered a fresh monthly low (1.2392) during the previous week, but the exchange rate may respond to the positive slope in the 50-Day SMA (1.2416) as it holds above the moving average.

GBP/USD Rate Outlook

GBP/USD consolidates after snapping the series of lower highs and lows from last week, and the exchange rate may attempt to retrace the decline from the monthly high (1.2680) as it bounces along the moving average.

Need a move above last week’s high (1.2547) to bring 1.2650 (38.2% Fibonacci extension) back on the radar, with a move above the monthly high (1.2680) opening up the 1.2760 (61.8% Fibonacci retracement) region.

Next area of interest comes in around 1.2890 (50% Fibonacci extension), but failure to clear last week’s high (1.2547) may lead to a further decline in GBP/USD, with a close below the moving average opening up the 1.2280 (23.6% Fibonacci extension) to 1.2340 (23.6% Fibonacci extension) area.