GBP/USD Technical: Looking to resume minor up move

• Recent drop of 156 pips from the current 52-week high of 1.2848 has not damaged GBP/USD minor uptrend.
• Price actions so far have been trading above upward sloping 13-day moving average now acting as support at 1.2630.
• Short-term upside momentum seems to have resurfaced as indicated by the hourly RSI oscillator.

The ongoing medium-term uptrend phase of GBP/USD in place since the 26 September 2022 low of 1.0359 has hit a current 52-week high of 1.2848 last Friday, 16 June.

In the past week, it has declined by 156 pips (-1.22%) to print an intraday low of 1.2691 on Wednesday, 21 June ahead of today’s Bank of England’s monetary policy decision.

The medium-term uptrend remains intact with major resistance at 1.3360

Fig 1: GBP/USD medium-term trend as of 22 Jun 2023 (Source: TradingView, click to enlarge chart)

The weakness seen in the price actions of the GBP/USD in the past two days has not damaged the minor uptrend phase in place since the 7 June 2023 low of 1.2395.

It has continued to evolve within a minor ascending channel (see 1-hour chart) and traded above an upward-sloping 13-day moving average.

A resurgence of short-term upside momentum

Fig 2: GBP/USD minor short-term trend as of 22 Jun 2023 (Source: TradingView, click to enlarge chart)

The 1-hour RSI oscillator has just managed to form a “higher low” after it hit its oversold zone on Wednesday, 21 June which indicates that short-term upside momentum may have resurfaced.

Watch the 1.2630 key short-term pivotal support with next resistances coming in at 1.2980 and 1.3110 (upper boundary of the minor ascending channel, congestion area of 14 March/19 April 2022 & 76.4% Fibonacci retracement of the prior medium-term down move from 13 January 2022 high to 26 September 2022 low, see daily chart).

On the other hand, a break below 1.2630 negates the bullish tone to expose the key medium-term support of 1.2450.

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.