GBP/USD Price Analysis: Again fails to keep 100-day SMA breakout
|- GBP/USD remains depressed after taking a U-turn from 1.2490.
- Two-week-old resistance-turned support could restrict immediate downside.
- Bulls will have to cross June 24 top to confirm further advances.
GBP/USD eases from 1.2490 to currently around 1.2465 during the initial hour of Tokyo open on Thursday. The cable takes a U-turn from one-week-old to defy its previous day’s break of 100-day SMA, which becomes frequent since the mid-June.
As a result, sellers are jostling with a 100-day SMA level around 1.2460 to revisit the falling trend line from June 16, at 1.2400 now.
It should, however, be noted that the pair’s further weakness past-1.2400 will be confined by an upward sloping trend line from May 18 and 38.2% Fibonacci retracement of March-June upside, near 1.2275/70.
Alternatively, a 23.6% Fibonacci retracement level of 1.2485 can offer immediate resistance ahead of 1.2500 and June 24 top near 1.2545.
Given the pair’s ability to cross 1.2545, it can rise towards 1.2690 and the previous month’s top of 1.2813.
GBP/USD daily chart
Trend: Pullback expected
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.