September 15, 2022 19:03:31
The sterling is on a downward spree despite not much activity around the greenback. The GBP/USD pair has depreciated nearly 1.30% from the monthly highs and still the rest of the two weeks remaining of September. The recent market structure remains oversold but the momentum favors the bears.
The RSI indicator is trading just above the average line with a negative bias. Any downtick in the indicator could turn the oscillator lower below 30.
The bulls were having a relief rally from the lows of July 14 of 1.1760 as the price tested the swing highs around 1.2290. However, the rally lacks real buying potential as faces rejection at the 50-day exponential moving average at 1.2210. As the price sliced the moving average it amplify the selling and the pair nosedived to fresh yearly lows of 1.1405.
The price could extend the decline as the sellers became active at every higher trajectory, signaling no immediate respite in the offering. Below the daily low, if happened, the gates would be open for 1.1380 followed by the critical 1.1300 mark.
In contrast, the renewed buying momentum on the pretext of the oversold market conditions could see an immediate recovery toward the 0.23% Fibonacci retracement level placed at 1.1607. Above this bullish action could shift the focus further at Tuesday’s high of 1.1738.