GBP/USD Price Analysis: Bears attack 14-day low after breaking three-month-old support line, 50-day SMA

GBP/USD stays on the back foot near the lowest since June 01.
A sustained break of key support line, now resistance, as well as 50-day SMA, keep sellers hopeful.
61.8% Fibonacci retracement adds to the upside barrier.

Anil Panchal FXStreet

GBP/USD declines to 1.2413, down 0.09% on a day, amid the early Tokyo session on Friday. In doing so, the Cable remains near the previous day’s low, the bottom of the month, while also flashing a four-day losing streak.

The reasons supporting the pair’s latest weakness could be traced from its sustained break of an ascending trend line from March 20, backed by extended fall under 50-day SMA.

Hence, the sellers currently aiming to refresh the monthly low around 1.2330/25. Though, 50% Fibonacci retracement level of March month downside, close to 1.2300, could challenge the bears afterward, if not then the odds of its further downside towards the May month low near 1.2075 can’t be ruled out.

Meanwhile, the pair’s rise past-50-day SMA level of 1.2430 will need to pierce the support-turned-resistance, at 1.2465 now, to question 61.8% Fibonacci retracement level of 1.2515.

During the pair’s recoveries beyond 1.2515, a one-week-old falling trend line near 1.2585 and the weekly top close to 1.2690 might lure the bulls.

GBP/USD daily chart

Trend: Bearish

Additional important levels

Overview
Today last price	1.2415
Today Daily Change	-9 pips
Today Daily Change %	-0.07%
Today daily open	1.2424

Trends
Daily SMA20	1.25
Daily SMA50	1.2427
Daily SMA100	1.2519
Daily SMA200	1.2693

Levels
Previous Daily High	1.2567
Previous Daily Low	1.2402
Previous Weekly High	1.2813
Previous Weekly Low	1.2474
Previous Monthly High	1.2601
Previous Monthly Low	1.2076
Daily Fibonacci 38.2%	1.2465
Daily Fibonacci 61.8%	1.2504
Daily Pivot Point S1	1.2362
Daily Pivot Point S2	1.2299
Daily Pivot Point S3	1.2196
Daily Pivot Point R1	1.2527
Daily Pivot Point R2	1.263
Daily Pivot Point R3	1.2693

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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