GBP/USD Price Analysis: Bulls challenge 23.6% Fibo. level of the recent slide
|- GBP/USD built on the previous day’s recovery move from seven-week lows.
- Mixed oscillators on hourly/daily charts warrant caution for bullish trades.
The GBP/USD pair continued gaining traction through the mid-European session and climbed further beyond the 1.2900 mark. The momentum pushed the pair to a three-day high level of 1.2925, nearing a resistance marked by the 23.6% Fibonacci level of the 1.3482-1.2763 downfall.
Some follow-through buying should pave the way for an extension of the ongoing recovery move from seven-week lows and assist bulls to aim back to reclaim the key 1.3000 psychological mark. The momentum could further get extended towards the 1.3035 confluence region, comprising of 200-hour SMA and 38.2% Fibonacci level.
That said, RSI (14) on the 1-hourly chart is already flashing overbought conditions. Moreover, technical indicators on the daily chart – though have recovered from the negative territory – are yet to confirm the bullish bias. This, in turn, warrants some caution for bullish traders amid growing fears of a no-deal Brexit.
On the flip side, weakness back below the 1.2900-1.2890 horizontal zone now seems to find some support near the 1.2860 region. Failure to defend the mentioned support levels might be seen as a fresh trigger for bearish traders and accelerate the fall towards the 1.2800 mark. The pair might then slide back towards the recent swing lows, around the 1.2765-60 region.
GBP/USD 1-hourly chart
Technical levels to watch
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