GBP/USD Price Analysis: Bounces off 1.2870-65 support confluence

GBP/USD consolidates the biggest losses in a month while trying to regain the 1.2900 round-figure.
21-day SMA, 50% Fibonacci retracement level offers immediate key support.
A horizontal area since late-July becomes tough resistance to watch.

Anil Panchal FXStreet

GBP/USD picks up the bids near 1.2890, up 0.08% intraday during Wednesday’s Asian session. The Cable dropped over 140-pips on Tuesday after failing to overcome the multiple levels surrounding the 38.2% Fibonacci retracement of June-September upside. Though, a joint of 21-day SMA and 50% Fibonacci retracement seems to trigger the latest pullback.

With the normal RSI conditions favoring further recovery in the GBP/USD prices from the key support, bulls may attack 1.2955/60 ahead of confronting the 1.3000 threshold and the crucial horizontal resistance near 1.3015.

If at all the pair manages to cross 1.3015 on a daily closing, the August 24 low near 1.3055 becomes an additional filter to the north.

Alternatively, the pair’s downside past-1.2865 may take a rest near the early September lows surrounding 1.2760 before highlighting the 200-day SMA and 61.8% of Fibonacci retracement close to 1.2720/15.

Additionally, the last month’s bottom, adjacent to 1.2675, becomes the extra support that can challenge the GBP/USD bears.

GBP/USD daily chart

Trend: Further recovery expected

Additional important levels

Overview
Today last price	1.2886
Today Daily Change	7 pips
Today Daily Change %	0.05%
Today daily open	1.2879

Trends
Daily SMA20	1.2864
Daily SMA50	1.3035
Daily SMA100	1.278
Daily SMA200	1.2716

Levels
Previous Daily High	1.3007
Previous Daily Low	1.2867
Previous Weekly High	1.2979
Previous Weekly Low	1.2747
Previous Monthly High	1.3482
Previous Monthly Low	1.2676
Daily Fibonacci 38.2%	1.292
Daily Fibonacci 61.8%	1.2954
Daily Pivot Point S1	1.2828
Daily Pivot Point S2	1.2777
Daily Pivot Point S3	1.2688
Daily Pivot Point R1	1.2969
Daily Pivot Point R2	1.3058
Daily Pivot Point R3	1.3109

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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