GBP/USD breaks 1.25 and a key resistance zone but are the bulls in charge?

GBP/USD trades nearly half a percent higher as the dollar weakens further.
The psychological 1.25 level has been broken and it was looking like a strong resistance.

Rajan Dhall, MSTA FX Daily

GBP/USD 1-hour chart

The USD has once again been the underperformer in the FX markets as the risk-on environment continues. This has lead the price of GBP/USD to push higher despite GBP not really being one of the strongest of the G10 currencies on Tuesday. EUR/GBP and GBP/AUD can be our barometer with the pound struggling in both pairs.

Looking at the 1-hour chart below, the 200 Simple Moving Average has been taken out. The indicator was closely aligned with the 38.2% Fibonacci retracement and both have now been rendered obsolete but the push higher in the pair.

The next resistance point is now at the 50% Fibonacci retracement zone and beyond that the red line at 1.2612. As you can see from the chart below the blue downward sloping diagonal trendline has now been broken and there is a tendency for price to retest a trendline once broken.

The purple upward sloping trendline is the one to watch. Any break below could mean the price could be heading back down. Until that point at least the bulls are in charge.

Looking at the technical indicators the Relative Strength Index has a small divergence forming which could mean the price is ready to pullback. Around 1.2550 is a pretty sticky-price zone so the price could struggle to move beyond there but it does depend on the extent of the USD weakness at the moment.

Additional levels

GBP/USD

Overview
Today last price	1.2523
Today Daily Change	0.0055
Today Daily Change %	0.44
Today daily open	1.2468

Trends
Daily SMA20	1.2523
Daily SMA50	1.2424
Daily SMA100	1.2506
Daily SMA200	1.2693

Levels
Previous Daily High	1.2477
Previous Daily Low	1.2336
Previous Weekly High	1.2688
Previous Weekly Low	1.2344
Previous Monthly High	1.2601
Previous Monthly Low	1.2076
Daily Fibonacci 38.2%	1.2423
Daily Fibonacci 61.8%	1.239
Daily Pivot Point S1	1.2377
Daily Pivot Point S2	1.2286
Daily Pivot Point S3	1.2236
Daily Pivot Point R1	1.2518
Daily Pivot Point R2	1.2568
Daily Pivot Point R3	1.266

Author

Rajan Dhall, MSTA

FX Daily

Rajan Dhall is an experienced market analyst, who has been trading professionally since 2007 managing various funds producing exceptional returns.

EUR/USD slumps below 1.1750 as USD benefits from risk-aversion

EUR/USD comes under renewed bearish pressure in the European session and trades below 1.1750 following a recovery attempt earlier in the day. The US Dollar gathers strength and weighs on the pair as investors seek refuge in the wake of Israel and the United States' joint attack on Iran.

GBP/USD targets 1.3500 barrier near moving averages

GBP/USD rebounds from the daily losses, trading around 1.3450 during the Asian hours on Monday. The technical analysis of the daily chart indicates an ongoing bearish bias, as the pair trades within a descending channel pattern.

Gold surges on safe-haven demand, rises above $5,400

Gold benefits from intense risk-aversion on Monday and climbs above $5,400, setting a fresh monthly-high in the process. Tensions in the Middle East remain high as Israel and Hezbollah continue to exchange strikes following the US-Israel joint attack on Iran over the weekend.

Bitcoin, Ethereum and Ripple under pressure as key supports face breakdown risk

Bitcoin, Ethereum, and Ripple prices trade on the back foot at the start of this week on Monday, after extending losses in the previous week. BTC is on the brink of a breakdown, ETH is capped below key resistance, and XRP risks a crack of the trendline.

The market is paying for insurance, not apocalypse

As expected, this morning felt less like a Monday market open and more like a fire drill. Futures screens flickered red. S&P contracts down almost 1%. Nasdaq off 1.2%. Brent leaped 13% through $80. Gold rose 1.6% toward $5350 before paring some gains. The dollar is strutting mildly. The Swiss franc is quietly doing what it always does in a storm, catching some safe-haven flows.

Pi Network Price Forecast: Core team offloads supply, weighing on PI recovery

Pi Network hovers below $0.1700, broadly steady at press time on Monday, attempting a recovery after a 2% loss the previous day. Sunday’s decline aligned with nearly 49 million PI tokens offloaded by the Pi Foundation, implying a spike in supply pressure that capped the prevailing four-day recovery.