GBP/USD – Strong support around 1.2240
Despite the retreat from the high of 1.2333, the odds of a bullish move remain intact given the bullish price RSI divergence on the intraday charts last week and the bullish inverted hammer candle on the daily.
Furthermore, short-term moving averages – 5-DMA and 10-DMA appear to have bottomed out. Thus a rebound from 1.2240 appears likely and could yield a move back to 1.2330 and 1.2380 levels.
On the lower side, only a daily close below Oct 12 low (inverted bullish hammer candle) of 1.2115 would signal a fresh sell-off.
Furthermore, short-term moving averages – 5-DMA and 10-DMA appear to have bottomed out. Thus a rebound from 1.2240 appears likely and could yield a move back to 1.2330 and 1.2380 levels.
On the lower side, only a daily close below Oct 12 low (inverted bullish hammer candle) of 1.2115 would signal a fresh sell-off.
