- GBP/USD stays defensive after reversing from 21-day EMA.
- Impending bull cross on MACD, hesitance in breaking the support line tease buyers.
- Bears need validation from 1.2160 before targeting the yearly low.
GBP/USD struggles for clear directions as it seesaws around two-week-long support surrounding 1.2260 heading into Tuesday’s London open.
However, a looming bullish signal on the MACD joins a fortnight-old support line to challenge the pair bears.
Even if the quote drops below 1.2260 immediate support, multiple levels surrounding 1.2180-60 marked since June 16 could challenge the pair’s further weakness.
In a case where the GBP/USD bears manage to conquer the 1.2160 support, they can rush towards the yearly bottom near 1.1930-35, also the lowest levels since March 2020.
Meanwhile, recovery remains elusive until the Cable pair remains below the 21-day EMA level surrounding 1.2330.
Should the quote rises past 1.2330, the 61.8% Fibonacci retracement of the May-June fall and a downward sloping trend line from late May, respectively around 1.2390 and 1.2470, will gain the market’s attention.
Overall, GBP/USD remains on the bear’s radar but short-term corrections can’t be ruled out.
GBP/USD: Daily chart
Trend: Corrective pullback expected
Additional important levels
|Today last price||1.2271|
|Today Daily Change||0.0005|
|Today Daily Change %||0.04%|
|Today daily open||1.2266|
|Previous Daily High||1.2332|
|Previous Daily Low||1.2238|
|Previous Weekly High||1.2324|
|Previous Weekly Low||1.2161|
|Previous Monthly High||1.2667|
|Previous Monthly Low||1.2155|
|Daily Fibonacci 38.2%||1.2274|
|Daily Fibonacci 61.8%||1.2296|
|Daily Pivot Point S1||1.2225|
|Daily Pivot Point S2||1.2184|
|Daily Pivot Point S3||1.2131|
|Daily Pivot Point R1||1.232|
|Daily Pivot Point R2||1.2373|
|Daily Pivot Point R3||1.2414|
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