CBRT Gross Reserves Fall to Lowest Level in a Year

Despite USDTRY being in overbought territory with an RSI of 77.7, negative sentiment from news of a decline in TCMB reserves may pressure the Turkish lira in the short term. The price remains above the 20- and 50-day moving averages, and the MACD is in positive territory, though just below the signal line. However, overbought conditions and the impact of the reserve news risk limiting upside movement. The upward trend may continue in the near term, but caution is warranted.

Despite the RSI approaching oversold territory at 31.6, the decline in CBRT reserves could exert pressure on the Turkish lira. The price is trading below both the 20-day and 50-day moving averages, and the MACD remains negative below its signal line. In the short term, selling pressure is likely to persist, though the pace of decline may be limited due to oversold conditions. Therefore, while the bias remains bearish, a strong breakout is not expected.

The decline in Turkey's gross reserves to their lowest level in a year could exert pressure on the Turkish lira and push the GBPTRY pair higher. Technically, while the RSI at 34.5 is near oversold territory, the MACD remains below the signal line and in negative territory, supporting a short-term bearish trend. The price is trading above the 20- and 50-day moving averages, but the negative sentiment from the reserve news may lead to a test of these levels. In the near term, the pair is likely to retreat toward the 62.00 support level.