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.

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

fxsoriginal

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

 

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD holds gains above 1.1850 amid tepid market mood

EUR/USD is trading above 1.1850, holding onto recent gains The uptrend, however, at risk as coronavirus cases rise across the Eurozone. New lockdown restrictions may force the ECB to adopt a stronger dovish stance. Focus shifts to Powell's speech, EZ Preliminary PMIs. 

EUR/USD News

GBP/USD eases below 1.2950 amid likely virus curbs

GBP/USD stays well bid near  mid-1.2900s following three successive failures to cross 1.3000 during last week. UK’s health authorities mull lockdown restrictions. Chancellor Sunak may extend business support loans. Fedspeak eyed amid a light calendar. 

GBP/USD News

Gold due for a breakout, according to key indicator

Gold's multi-week consolidation in a narrowing price range could end with a bullish breakout, as a widely-tracked daily chart indicator is about to turn bullish. The yellow metal has carved out a descending triangle pattern over the past four weeks.

Gold News

Forex Today: US dollar sags amid fiscal overhang, mounting coronavirus risks

The US dollar remained on the defensive starting out a fresh week this Monday, extending last week’s softness, courtesy of the gridlock on the US fiscal stimulus.

Read more

WTI buyers attack $41.00 amid US-Iran tension, escalating virus woes

WTI remains heavy below 50-day SMA, drops from $41.18 to begin the week. The energy benchmark keeps trailing 50-day SMA for over two weeks while taking clues from the US-Iran tussle and the coronavirus (COVID-19) headlines. Hopes of further stimulus, China’s optimism favor energy bulls.

Oil News

Forex MAJORS

Cryptocurrencies

Signatures