GBP/USD breaks to a new wave low at the end of the week on the 4-hour chart

GBP/USD dropped 0.64% on Friday after underperforming for the session.
The price could find some support soon as there is a decent level close to the current price level.

Rajan Dhall, MSTA FX Daily

GBP/USD 4-hour chart

GBP/USD has pushed lower on Friday to end the week on a negative note. The price has just printed below the previous wave low and this will be the third weekly bearish close in a row unless there is some miracle before the US close.

Just below 1.23, there is a support level that could stem the losses. If the price breaks beyond that then there could be a further capitulation toward the main support low on the chart of 1.2086.

The Relative Strength Index looks to be setting up for a potential bearish divergence. This is when the market makes a lower low wave and the indicator makes a higher low. As GBP is such a risk-sensitive currency the Chinese manufacturing PMI data could have a big impact along with the NFP data at the end of the week.

Additional levels

GBP/USD

Overview
Today last price	1.2342
Today Daily Change	-0.0077
Today Daily Change %	-0.62
Today daily open	1.2419

Trends
Daily SMA20	1.2545
Daily SMA50	1.2419
Daily SMA100	1.249
Daily SMA200	1.2692

Levels
Previous Daily High	1.2464
Previous Daily Low	1.2389
Previous Weekly High	1.2688
Previous Weekly Low	1.2344
Previous Monthly High	1.2601
Previous Monthly Low	1.2076
Daily Fibonacci 38.2%	1.2436
Daily Fibonacci 61.8%	1.2418
Daily Pivot Point S1	1.2384
Daily Pivot Point S2	1.2349
Daily Pivot Point S3	1.2308
Daily Pivot Point R1	1.2459
Daily Pivot Point R2	1.25
Daily Pivot Point R3	1.2535

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.

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