Is GBP/USD Failing Below 1.25 Again? - Forex News by FX Leaders
The resistance below 1.25 is still holding

Is GBP/USD Failing Below 1.25 Again?

Posted Friday, April 10, 2020 by
Skerdian Meta • 1 min read

GBP/USD had such interesting times last month. At some point in the second week, this pair was trading at 1.32, but crashed lower as coronavirus spread across Europe and fears grew fast, sending the GBP crashing lower. Also, the USD surged during that time, which escalated the decline.

But, the USD retreated in the following week and it send he price higher in GBP/USD, which climbed around 11 vents. But, buyers gave up right below the big round level at .125. They tried three times to push above there, but the failed and eventually gave up.

On Monday this week, the price fell more than 300 pips lower, to 1.3260s. But the USD retreated again and GBP/USD climbed back up, getting pretty close to 1.25. But, buyers couldn’t push above the resistance level at 1.2480, in order to reach and probably push above 1.25.

The price is slowly slipping lower and the 50 SMA (yellow) is catching up with the price, which should add some more strength to the resistance. So, this might be the beginning of the big decline. We are already short on this pair at 1/2260s, so we won’t open another signal here, but will follow the price action, hoping that the larger bearish trend resumes.

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About the author

Skerdian Meta // Lead Analyst
Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.
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