GBP/USD Price Analysis: Braces for a bumpy road to south, 200-DMA in the spotlight

GBP/USD consolidates the biggest daily loss in a fortnight around weekly low.
Ascending trend lines from January and last November precede 200-DMA to challenge bears.
U-turn from 50-DMA, bearish MACD signals favor sellers.

Anil Panchal FXStreet

GBP/USD stays defensive around 1.2030, bouncing off the weekly low, as it licks the previous day’s wounds during early Thursday.

In doing so, the Cable pair rebounds from a six-week-old support line after falling the most in a fortnight. The recovery moves, however, remain elusive considering the quote’s sustained U-turn from the 50-DMA and the bearish MACD signals.

It’s worth noting, though, that the ascending support lines from early January and mid-November 2022, respectively around 1.2000 and 1.1985 in that order, restrict the short-term downside of the GBP/USD pair.

Following that, the 200-DMA level of 1.1940 gains the major attention of the bears targeting the mid-November 2022 bottom around 1.1760. However, the previous monthly low surrounding 1.1840 could offer an intermediate halt during the fall.

Meanwhile, GBP/USD recovery remains elusive unless crossing the 50-DMA hurdle of near 1.2180.

In a case where the GBP/USD price remains firmer past 50-DMA, a one-month-old horizontal resistance near 1.2260 will be in focus as it holds the key for the Cable pair’s run-up toward the multiple tops marked since late 2022 around 1.2450.

Overall, GBP/USD is likely to remain depressed but the downside room appears limited.

GBP/USD: Daily chart

Trend: Limited downside expected

Additional important levels

Overview
Today last price	1.2034
Today Daily Change	-0.0143
Today Daily Change %	-1.17%
Today daily open	1.2177

Trends
Daily SMA20	1.2249
Daily SMA50	1.2186
Daily SMA100	1.1874
Daily SMA200	1.1943

Levels
Previous Daily High	1.227
Previous Daily Low	1.2118
Previous Weekly High	1.2194
Previous Weekly Low	1.1961
Previous Monthly High	1.2448
Previous Monthly Low	1.1841
Daily Fibonacci 38.2%	1.2212
Daily Fibonacci 61.8%	1.2176
Daily Pivot Point S1	1.2107
Daily Pivot Point S2	1.2036
Daily Pivot Point S3	1.1954
Daily Pivot Point R1	1.2259
Daily Pivot Point R2	1.234
Daily Pivot Point R3	1.2411

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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