Pound Streling set for further weakness

17 Sep 2023

GBPUSD yielded a close below the critical 200-day Simple Moving Average (SMA) at 1.2433 on Thursday, paving the way for further downside.
The 14-day Relative Strength Index (RSI) is sitting just above the oversold territory, suggesting that there is more room for Pound Strerling sellers.
If they managed to find a strong foothold below the 200-day SMA at 1.2433, GBP/USD could extend the downtrend toward the May 25 low of 1.2308 will likely come to the rescue of Pound Sterling buyers.
Conversely, any recovery attempts will need acceptance above the weekly high of 1.2548, above which the descending 21-day SMA at 1.2587 will come into play.
Fresh buying opportunities will emerge on a firm break of the latter, initiating an uptrend toward the horizontal 100-day SMA at 1.2653.