GBP/USD Price Analysis: Nears three-week-old support trendline
|- GBP/USD bears catch a breath near a short-term key support line.
- Close to oversold RSI conditions also favor the pair’s pullback beyond 23.6% Fibonacci retracement.
- December 2019 low will be the key to watch during further downside.
GBP/USD looks for a clear direction near 1.3000 amid the Asian session on Tuesday. The pair registered heaviest losses, -1.6%, during the previous day while staying above the three-week-old support line.
In addition to the immediate trend line support, around 1.2980, close to oversold conditions of RSI also increase the odds of the pair’s pullback.
With this, 23.6% Fibonacci retracement of its declines from December 12 to 23, 2019, at 1.3050, could regain buyers’ attention during the pullback, a break of which recall 1.3100 and January 23 highs near 1.3150.
During the pair’s advances past-1.3150, 50% Fibonacci retracement level close to 1.3210 will be the key to watch.
On the flip side, the pair’s break of the immediate support line, at 1.2980, could please sellers with 1.2950 and December 2019 low of 1.2905.
GBP/USD four-hour 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.