GBP/USD: Clean break below 21DMA could open room for further downside – OCBC

GBP/USD stays relatively quiet at around 1.2150. A break below here could open room for further losses, economists at OCBC Bank report

Risks still skewed to the downside in the near term

“Daily momentum is mild bearish while RSI is flat.”

“Bearish divergence on MACD and rising wedge pattern (bearish reversal) continue to caution for pullback play lower in the near term.”

“Risks still skewed to the downside in the near term.”

“Support here at 1.2150 (21 DMA), 1.21 (200 DMA), 1.2050 (50% fibo).” “Resistance at 1.2450 (61.8% fibo retracement of 2022 high to low).”