- A slip below 61.8% Fibo retracement at 1.3283 has established a bearish tone.
- The cable has been dumped almost 4% in the past 15 trading sessions.
- The RSI (14) has shifted into a bearish range of 20.00-40.00, which adds to the downside filters.
The GBP/USD pair has witnessed carnage amid broader risk-off impulse in the market. The pound bulls have been dumped almost 4% in the past 15 trading sessions. On Friday, the cable has registered a fresh 52-week low at 1.3082. The major prepares for a fresh weakness after slipping below 20 December 2021 low at 1.3174.
On the daily scale, GBP/USD has slipped below 61.8% Fibonacci retracement, which is placed from 23 September 2020 low at 1.2675 to 24 February 2021 high at 1.4243. Usually, a plunge below the 61.8% Fibo retracement results in a continuation of weakness and re-test of initial lows, which is the 23 September 2020 low at 1.2675.
The 20-period and 200-period Exponential Moving Averages at 1.3325 and 1.3546, respectively, are scaling lower, which adds to the downside filters.
Meanwhile, the Relative Strength Index (RSI) (14) has shifted its range from 40.00-60.00 to 20.00-40.00, which is a bearish range and every pullback is considered as a selling opportunity.
For more plunge, the cable needs to skid below Friday’s low at 1.3082, which will drag it lower to the psychological support of 1.3000. A breach of the latter will send the pair towards the 2 November 2020 low at 1.2854.
On the flip side, bears can lose control if GBP/USD oversteps Thursday’s high at 1.3195. This will trigger the pound bulls and the cable can shift higher near 61.8% Fibo retracement at 1.3283, followed by 20-period EMA at 1.3325.
GBP/USD daily chart
-637825554360666905.png)
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD: Is the US Dollar corrective decline over? Premium
The EUR/USD pair ended a three-week losing streak, recovering towards 1.0600 before finally finding sellers. The US Dollar (USD) gapped lower at the weekly opening after reaching fresh 2024 highs against its European rival, with EUR/USD bottoming at 1.0332 on November 22.
GBP/USD: Pound Sterling rebounds, not out of the woods yet Premium
The Pound Sterling (GBP) snapped a two-week downtrend and staged a comeback against the US Dollar (USD), driving the GBP/USD pair back to the 1.2700 threshold.
Gold: Easing geopolitical tensions trigger profit-taking Premium
Gold (XAU/USD) declined sharply on easing geopolitical concerns on Monday and spent the rest of the week trying to recover its losses. Employment-related macroeconomic data releases from the US could alter the expectations about the Federal Reserve’s policy decision in December and trigger the next big action in XAU/USD.
Bitcoin: A healthy correction
Bitcoin (BTC) experienced a 7% correction earlier in the week, dropping to $90,791 on Tuesday before recovering to $97,000 by Friday. On-chain data suggests a modest rebound in institutional demand, with holders buying the dip. A recent report indicates BTC remains undervalued, projecting a potential rally toward $146K.
US Dollar flat ahead of weekend full of uncertainties over France's budget
The US Dollar (USD) is recovering with the US trading session opening on Black Friday. The rally in the Euro which was weighing on the US Dollar and the US Dollar Index (DXY), is fading at the start of the US trading session.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.