GBP/USD technical analysis: 21-DMA limits immediate declines
|- Declines following Doji drags the GBP/USD pair to 21-DMA.
- Upside capped by 61.8% Fibonacci retracement, June 18 top may question sellers during the plunge.
GBP/USD portrays the aftermath of declines based on Monday's Doji candle while taking the rounds to 1.2670, near 21-DMA, while heading into the UK open on Wednesday.
Should sellers refrain from respecting the near-term moving average (MA), June 18 high near 1.2566 may act as an intermediate halt during the plunge towards the month’s bottom around 1.2506.
While 14-day relative strength index (RSI) is more likely to limit the pair’s declines past-1.2506, failure to do so highlights December 2018 low of 1.2480 and the year-to-date trough close to 1.2438 may lure the bears.
On the contrary, 61.8% Fibonacci Retracement of January to March 2019 upside, at 1.2800, is likely a strong resistance for buyers to conquer in order to aim for April month low near 1.2865.
If bulls dominate past-1.2865, 50% Fibonacci retracement near 1.2909 and 200-day moving average (DMA) at 1.2923 could flash on their radars.
GBP/USD daily chart
Trend: Pullback expecte
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