GBP – Pound sterling hits resistance at 1.30, increasing the chances of correction

In terms of technical trends, GBP/USD has always been faltering at high levels close to the 1.30, and on Wednesday it fell significantly to a two-week low below 1.2880. The MACD indicator on the chart is currently breaking below the signal line. It is expected that last week's adjustment is only in the initial stage, and there is still room for further decline in the short term. If calculated based on the cumulative increase of about 918 points from the low of 1.2097 on January 13 to date, the adjustment levels of 23.6% and 38.2% are 1.28 and 1.2665, and the expansion to 50% and 61.8% are at 1.2555 and 1.2450. Note that the 25-day moving average is also an important reference, currently at 1.2840. As for the resistance, we will still focus on 1.3000/20. If a breakthrough can be made in the future, it is expected that the extended resistance will point to the 1.32 and 1.3440 levels. The next key level is the 1.35.

Forecast range:
Resistance 1.3000/20* - 1.3200 – 1.3440 – 1.3500
Support 1.2800/40 – 1.2665 - 1.2555 – 1.2450

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