GBP/USD Price Analysis: Keeps the red below 1.3100 mark, downside seems limited
|- GBP/USD witnessed a modest pullback from resistance marked by 61.8% Fibo. level.
- Prospects for the emergence of some dip-buying should help any meaningful slide.
The GBP/USD pair maintained its offered tone through the early North American session and was last seen trading near the lower end of its daily trading range, below the 1.3100 mark. The intraday downtick, so far, has managed to find decent support near the 50% Fibonacci level of the 1.3482-1.2676 recent slide.
Given the overnight breakthrough a one-week-old descending trend-line resistance, the bias remains tilted in favour of bullish traders. The constructive outlook is further reinforced by the fact that oscillators on the daily chart maintained their bullish bias and have also eased from the overbought territory on the 4-hourly chart.
That said, it will still be prudent to wait for some follow-through buying beyond the overnight swing high, around the 1.3175 region, which coincides with the 61.8% Fibo. level, before positioning for any further appreciating move. The GBP/USD pair might then aim to surpass the 1.3200 mark and test the 1.3235 resistance zone.
On the flip side, any further slide below the 50% Fibo. level might still be seen as an opportunity to initiate fresh bullish positions amid the latest optimism over the resumption of Brexit talks. This, in turn, should help limit the downside near the 1.3030-25 horizontal support, which is followed by the key 1.3000 psychological mark.
The latter marks the mentioned trend-line resistance breakpoint and should now act as a strong base for the GBP/USD pair. Failure to defend the mentioned support levels will negate any prospects for any further near-term appreciating move, instead prompt some aggressive technical selling amid resurgent USD demand.
GBP/USD 4-hourly chart
Technical levels to watch
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