- 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
Technical levels to watch
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.
Latest Forex News
Editors’ Picks
EUR/USD stabilizes after US retail sales smash estimates
EUR/USD has bounced off its lows but remains below 1.20 after US retail sales smashed estimates with a 9.8% leap. Moreover, jobless claims tumbled to 576,000. Markets are digesting the big bulk of data.
GBP/USD rises toward 1.38 ahead of US data, Brexit meeting
GBP/USD is edging up toward 1.38, reversing its previous falls in tense trading ahead of all-important US retail sales. A Brexit-related meeting on Northern Ireland is also eyed.
ETH seizes the spotlight as BTC and XRP contemplate retracement
Bitcoin price shows a correction in play after the MRI flashed a red ‘one’ cycle top signal. Ethereum shows a strong trend continuation while the rest of the market experiences a minor pullback.
XAU/USD closes in on key $1,750 resistance
XAU/USD rises on Thursday supported by falling US T-bond yields. Gold faces a resistance at $1,750 in the near term. A downward correction to $1,740 is likely if XAU/USD fails to clear $1,750.
Breaking: Citi (C) beats on EPS and revenue, investment banking booms!
Citigroup (NYSE:C) reports Q1 2021 earnings showing strong growth in investment banking following on from Goldman smashing it on Wednesday. Citi shares are trading $74.20 in pre-market up nearly 2%.