GBP/USD Trades Below 50-Day SMA for First Time Since June

2 thg 8, 2023

GBP/USD approaches the July low (1.2659) ahead of the Bank of England (BoE) interest rate decision as it trades below the 50-Day SMA (1.2721) for the first time since June.

GBP/USD Rate Outlook

Failure to hold above the moving average may lead to a further decline in GBP/USD as it carves a series of lower highs and lows, with a break below the July low (1.2659) bringing the 1.2640 (38.2% Fibonacci extension) to 1.2650 (38.2% Fibonacci extension) region on the radar.

Next area of interest comes in around 1.2520 (23.6% Fibonacci extension), but the recent weakness in GBP/USD may end up being temporary if it defends the July low (1.2659).

Need a move above the 1.2850 (61.8% Fibonacci extension) to 1.2890 (50% Fibonacci extension) area for GBP/USD to clear the bearish price series, with a move above the 1.3000 (78.6% Fibonacci extension) handle bringing the 1.3140 (61.8% Fibonacci extension) to 1.3190 (100% Fibonacci extension) zone back on the radar.