GBP/USD Forecast: capped by key Fibonacci resistance

Valeria Bednarik FXStreet

The GBP/USD pair gained some traction during Asian trading hours, extending its advance up to 1.3264, the highest in over a week. However, a quiet macroeconomic calendar prevented the pair from rallying further, alongside with a key technical level around 1.3260. By the end of the day, UK's Brexit minister, David Davis and EU negotiator Michel Barnier will give a press conference, focused on the progress of the ongoing negotiations, amid rumors indicating a standstill. As for the US, September PPI will take center stage, alongside with some Fed's speakers that anyway will hardly surprise investors.

The 4 hours chart shows that the pair topped at the 61.8% retracement of its daily decline between 1.3401 an 1.3026, but also that it's consolidating above a horizontal 200 EMA at 1.3225, whilst the 50% retracement of the mentioned slides comes some 10 pips below the level, making of the area the immediate support. The pair, then, would need to accelerate through 1.3210 to gain downward traction today, with scope to extend it down to 1.3160/70. Technical indicators in the mentioned time frame have lost upward strength, but hold within positive territory, rather limiting the upward potential than suggesting an upcoming slide. Anyway, an advance beyond the mentioned daily high should open doors for an extension towards the 1.3300 level later on the day.

View live chart of the GBP/USD

Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

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