GBP/USD Price Analysis: Bulls challenge 23.6% Fibo. level of the recent slide

GBP/USD built on the previous day’s recovery move from seven-week lows.
Mixed oscillators on hourly/daily charts warrant caution for bullish trades.

Haresh Menghani FXStreet

The GBP/USD pair continued gaining traction through the mid-European session and climbed further beyond the 1.2900 mark. The momentum pushed the pair to a three-day high level of 1.2925, nearing a resistance marked by the 23.6% Fibonacci level of the 1.3482-1.2763 downfall.

Some follow-through buying should pave the way for an extension of the ongoing recovery move from seven-week lows and assist bulls to aim back to reclaim the key 1.3000 psychological mark. The momentum could further get extended towards the 1.3035 confluence region, comprising of 200-hour SMA and 38.2% Fibonacci level.

That said, RSI (14) on the 1-hourly chart is already flashing overbought conditions. Moreover, technical indicators on the daily chart – though have recovered from the negative territory – are yet to confirm the bullish bias. This, in turn, warrants some caution for bullish traders amid growing fears of a no-deal Brexit.

On the flip side, weakness back below the 1.2900-1.2890 horizontal zone now seems to find some support near the 1.2860 region. Failure to defend the mentioned support levels might be seen as a fresh trigger for bearish traders and accelerate the fall towards the 1.2800 mark. The pair might then slide back towards the recent swing lows, around the 1.2765-60 region.

GBP/USD 1-hourly chart

Technical levels to watch

GBP/USD

Overview
Today last price	1.2916
Today Daily Change	0.0069
Today Daily Change %	0.54
Today daily open	1.2847

Trends
Daily SMA20	1.3144
Daily SMA50	1.2972
Daily SMA100	1.2698
Daily SMA200	1.2735

Levels
Previous Daily High	1.2919
Previous Daily Low	1.2777
Previous Weekly High	1.3279
Previous Weekly Low	1.2763
Previous Monthly High	1.3396
Previous Monthly Low	1.2982
Daily Fibonacci 38.2%	1.2865
Daily Fibonacci 61.8%	1.2831
Daily Pivot Point S1	1.2776
Daily Pivot Point S2	1.2705
Daily Pivot Point S3	1.2634
Daily Pivot Point R1	1.2919
Daily Pivot Point R2	1.299
Daily Pivot Point R3	1.3061

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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