GBP/USD Price Analysis: In search of a firm direction, flat-lined above mid-1.2400s
|- GBP/USD seesawed between tepid gains/minor losses through the mid-European session on Friday.
- Neutral oscillators on hourly/daily charts warrant some caution before placing fresh directional bets.
The GBP/USD pair had some good two-way price moves on Friday and now seems to have stabilized just above mid-1.2400s, nearly unchanged for the day.
Looking at the technical picture, the pair this week confirmed a near-term bullish break through an important confluence resistance comprising of 200-hour SMA and a three-week-old descending trend-line. However, the subsequent positive move faltered ahead of mid-1.2500s on Thursday. The mentioned level marks a resistance representing the 50% Fibonacci level of the 1.2813-1.2252 recent log down.
Meanwhile, neutral technical indicators on hourly/daily charts haven't been supportive of any firm near-term direction. This, in turn, warrants some caution and also makes it prudent to wait for a sustained move in either direction before positioning for the pair's near-term trajectory.
In the meantime, the 200-hour SMA, around the 1.2415 region, is likely to protect the immediate downside. This is followed by the 23.6% Fibo. level support, around the 1.2380 region, below which the pair might slide back to test the trend-line resistance breakpoint, around mid-1.2300s.
Conversely, a sustained move beyond the key 1.2500 psychological mark has the potential to lift the pair back towards the 1.2540-50 supply zone (50% Fibo. level). Some follow-through buying has the potential to lift the pair towards the 1.2600 mark, which coincides with the 61.8% Fibo. level.
GBP/USD 1-hourly chart
Technical levels to watch
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