GBP/USD Price Analysis: Bear bias intact despite the minor bounce

GBP/USD needs to clear Wednesday's high to weaken bearish pressures.
A break below the weekly open could prove costly.

Omkar Godbole FXStreet Contributor

GBP/USD is currently trading at 1.2430, having put in a low of 1.2408 early Thursday.

The pair needs to establish a strong foothold above 1.2543 to invalidate the negative view put forward by Wednesday's bearish outside day candle.

That looks unlikely, given the renewed coronavirus scare, tensions between the US and China and the US and European Union, and the resulting risk aversion. The Dow Jones Industrial Average fell by over 600 points on Wednesday.

In addition, the long upper wicks attached to GBP/USD's previous two weekly candles show a strong sell-on-rise mentality.

The pair, therefore, risks falling back to 1.2408, under which, major support is seen directly at 1.2342 (weekly open). A violation there would validate the bearish or below-50 reading on the 14-week relative strength index and will likely yield a quick sell-off to 1.2070 (May low).

Daily chart

Weekly chart

Trend: Bearish

Technical levels

GBP/USD

Overview
Today last price	1.2429
Today Daily Change	0.0011
Today Daily Change %	0.09
Today daily open	1.2418

Trends
Daily SMA20	1.254
Daily SMA50	1.242
Daily SMA100	1.2495
Daily SMA200	1.2692

Levels
Previous Daily High	1.2543
Previous Daily Low	1.2415
Previous Weekly High	1.2688
Previous Weekly Low	1.2344
Previous Monthly High	1.2601
Previous Monthly Low	1.2076
Daily Fibonacci 38.2%	1.2464
Daily Fibonacci 61.8%	1.2494
Daily Pivot Point S1	1.2374
Daily Pivot Point S2	1.233
Daily Pivot Point S3	1.2246
Daily Pivot Point R1	1.2503
Daily Pivot Point R2	1.2587
Daily Pivot Point R3	1.2631

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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