Pound Faces Intraday Volatility and String Rejection Above 1.229

Pound, at the time of penning down this analysis, was trading at 1.224 in the global market against the US Dollar. However, the intraday appears quite volatile as it rose after a 20-day declining trend but faced strong resistance at 1.2300.

While GBP/USD faced intraday pullback, the pair lost steady support from 200-day daily MA. The consecutive lower low and the higher high trend took a break when there was a subtle uptrend, which turned bearish after the price of Pound slid below 1.23 against the greenback. While the pair continues to retain 50-day MA support, a fall below 1.221 or 1.220 can lead to a loss of the given support on the hourly chart. Moreover, the trend exhibits accumulation around 1.22 price areas in the intraday.

GBP/USD Forecast

On the hourly chart, GBP/USD is drawing a downtrend since the onset of the going month. The intraday appears quite volatile as the pair trades in the range of 1.221 to 1.229. This narrow trading range is the result of a lack of direction; however, it has not yet experienced a steep rise or falls for an extreme hit. Aligned to this, the RSI of the GBP/USD lies at 52.04 and is seen moving downsides after a rejection above 1.229 or 1.23 price mark. Similarly, the MACD also turned bearish as the signal line crossed above the MACD line on the hourly chart due to intraday volatility.

However, we are likely to see a rebound soon as the economies open and are close to being back to normal amidst the fear of Coronavirus. Additionally, we believe that now the US Dollar will regain its stance and the related other currencies as well.