GBP/USD Price Analysis: Bears flirt with fortnight-old support below 1.2300

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.

Anil Panchal FXStreet

GBP/USD struggles for clear directions as it seesaws around two-week-long support surrounding 1.2260 heading into Tuesday’s London open.

The cable pair portrayed a Doji candlestick the previous day while reversing from the 21-day EMA, which in turn suggested a reversal of the last week’s rebound.

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

Overview
Today last price	1.2271
Today Daily Change	0.0005
Today Daily Change %	0.04%
Today daily open	1.2266

Trends
Daily SMA20	1.2356
Daily SMA50	1.2467
Daily SMA100	1.2859
Daily SMA200	1.3184

Levels
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

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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