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GBPUSD takes a breather after aggressive sell-off
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Recovery could continue, but the outlook remains? gloomy
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Next major resistance region around 1.2300
GBPUSD is hoping for a positive daily close after six consecutive losing sessions. The 1.2100 number put the brakes on the downfall on Thursday, helping the price to climb by 0.60% so far in the day.
The stochastic oscillator and the RSI hint at oversold conditions, justifying a potential rebound in the price in the coming sessions. Yet, there is still some way to go to reverse the downward pattern above 1.2500.
In the meantime, initial resistance could pop up around the former 1.2300 support area. The falling constraining line from May 2021 could next add pressure around 1.2380 along with the 20-day simple moving average (SMA). Slightly higher, the price could get squeezed somewhere between the 200-day SMA and the tentative resistance line at 1.2470.
Should sellers re-activate the downtrend below 1.2100, the pair could retest the descending line drawn from November 2021 near 1.1993-1.2000. A step lower could bring the 1.1900 region under examination ahead of the 2023 trough of 1.1800.
