GBP/USD Price Analysis: Bears await a sustained break below the double-top neckline support


  • GBP/USD struggled to build on the goodish intraday bounce from sub-1.2300 levels.
  • The formation of a double-top supports prospects for an eventual bearish breakdown.
  • Bears are likely to aim towards challenging 1.2200 mark en-route April monthly lows.

The GBP/USD pair failed to capitalize on its intraday positive move and has now retreated over 50 pips from daily highs near the 1.2375-80 region. Despite the pullback, the pair has still managed to hold above the 1.2300 round-figure mark and the 1.2285-80 support zone.

The mentioned region coincides with an ascending trend-line extending from late March and should now act as a key pivotal point for short-term traders. Given the double-top formation near the very important 200-day SMA, the set-up seems tilted in favour of bearish traders.

Meanwhile, technical indicators on hourly/daily charts maintained their bearish bias but have struggled to gain any meaningful negative momentum. This, in turn, warrants some caution before positioning for any further near-term depreciating move for the cable.

A convincing breakthrough the double-top neckline support near the 1.2285-80 region will be seen as a fresh trigger for bearish traders and accelerate the fall towards the 1.2200 round-figure mark en-route April monthly swing lows support near the 1.2165 region.

On the flip side, any meaningful positive move beyond mid-1.2300s might still be seen as a selling opportunity and remain capped near the 1.2400-1.2420 supply zone. That said, some follow-through buying should assist the pair to aim back towards the key 1.2500 psychological mark.

GBP/USD daily chart

fxsoriginal

Technical levels to watch

GBP/USD

Overview
Today last price 1.2318
Today Daily Change -0.0017
Today Daily Change % -0.14
Today daily open 1.2335
 
Trends
Daily SMA20 1.2432
Daily SMA50 1.2383
Daily SMA100 1.2702
Daily SMA200 1.2661
 
Levels
Previous Daily High 1.2438
Previous Daily Low 1.2283
Previous Weekly High 1.2504
Previous Weekly Low 1.2266
Previous Monthly High 1.2648
Previous Monthly Low 1.2165
Daily Fibonacci 38.2% 1.2342
Daily Fibonacci 61.8% 1.2379
Daily Pivot Point S1 1.2266
Daily Pivot Point S2 1.2197
Daily Pivot Point S3 1.2111
Daily Pivot Point R1 1.2421
Daily Pivot Point R2 1.2507
Daily Pivot Point R3 1.2576

 

 

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