GBP/USD technical analysis: Nears short-term key support amid bullish MACD
|- GBP/USD clings to the 1.2120/17 key support area.
- A downside break will confirm short-term head and shoulders.
Despite its failure to sustain latest upswing, GBP/USD refrains from further declines as it rests on the key supports while taking rounds to 1.2125 ahead of the UK session opening on Tuesday.
The 1.2120/17 area comprising neckline of three-day old head and shoulders and 100-hour moving average (HMA) becomes the key for sellers to watch as a downside break will confirm the bearish chart pattern and drag the quote to 1.2050/45 support-region.
However, a six-day old rising trend-line at 1.2080 will offer an intermediate halt during the downpour.
Limiting the sellers is bullish signal by 12-bar moving average convergence and divergence (MACD), which in turn can recall 1.2140 during the pullback.
Should prices rise above 1.2140, 1.2180 and August 06 high near 1.2210 will become bulls’ favorites.
GBP/USD hourly 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.