GBPUSD Gives Up Some Ground ahead of UK PM’s Press Conference

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GBPUSD shifted to the sidelines after Thursday’s quick advance halted marginally near the 200-period simple moving average (SMA) at 1.1300 as it did earlier this month.

The stochastics have exited the overbought territory, while the RSI, although above 50, has a negative slope, both reflecting a weakening market sentiment as investors await more details on a potential budget U-turn by the UK prime minister.

Sellers, however, may not take charge unless the price slips below the 23.6% Fibonacci retracement of the 1.0324 – 1.1494 upleg at 1.1217. If that happens, the pair may next visit the 38.2% Fibonacci of 1.1045, which is currently intersecting the tentative ascending trendline drawn from the record low of 1.0324. Snapping that border, it will then head for the 50% Fibonacci of 1.0975.

In case downside pressures fade immediately, the price may push for a close above the 1.1300–1.1380 resistance region. If it succeeds, the door will open for October’s peak of 1.1494. Though only a decisive extension above the 1.1565 barrier would bring the long-term tentative descending trendline from March 2022 under examination at 1.1730.

Summarizing, GBPUSD seems to be struggling to sustain buying momentum despite its latest upturn. Nevertheless, a bounce off the 1.1217 level could provide another opportunity for the pair to recoup some lost ground.