GBP/USD technical analysis: 10-week old resistance-line portrays underlying weakness
|- 23.6% Fibonacci retracement of multi-year old downpour limits the GBP/USD pair’s immediate upside.
- 2.5 month long descending trend-line becomes sellers’ favorite tool.
- Multiple halts before meeting the 1.2300 round-figure.
10-week old descending trend-line keeps GBP/USD upside confined as the quote declines to 1.2455 ahead of the UK open on Tuesday.
While current year low near 1.2382 offers immediate support, March – April 2017 raise 1.2365 and 1.2335/30 as following levels to watch during further declines.
In case prices keep trading southwards below 1.2330, 1.2300 is likely an intermediate stop before watching over March 2017 bottom surrounding 1.2110.
Alternatively, 23.6% Fibonacci retracement level of 1.2570, followed by short-term falling resistance-line at 1.2580, can continue being tough upside barriers for the buyers to conquers.
If bulls manage to cross 1.2580, June high close to 1.2685 could be next on their watchlist.
GBP/USD weekly chart
Trend: Bearish
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.