GBP/USD: 50-DMA support at 1.2420 held up – OCBC

GBP/USD holds steady around mid-1.2400s. Economists at OCBC Bank analyze the pair's technical outlook.

Risks are skewed to the upside

“Mild bearish momentum intact but show signs of fading while RSI rose. Risks are skewed to the upside.”

“Resistance at 1.2470 (23.6% fibo), 1.2515 (21-DMA).”

“Support at 1.2420 (50-Day Moving Average), 1.2345 (38.2% fibo retracement of Mar low to May high).”

“This week’s data focus on prelim PMIs (Tue); CPI (Wed) and Retail Sales (Fri).”

See: Downside risks for Sterling are quite sizeable on soft UK CPI data – ING