GBP/USD Price Analysis: Bulls faced rejection near the 1.2300 confluence region

  • GBP/USD corrects from 1-1/2 week tops and momentarily slips below 1.2200 mark.
  • The set-up warrants some caution before positioning for further intraday downfall.

The GBP/USD pair failed to capitalize on its early uptick to near two-week tops and for now, seems to have faced rejection near the 1.2300 mark. The mentioned handle marks a confluence barrier comprising of 100-period SMA on the 4-hourly chart and 50% Fibonacci level of the 1.3200-1.1412 steep decline.

Given that oscillators on the daily chart are yet to catch up with the recent recovery move from 35-year lows, investors seemed reluctant to place fresh bullish bets. This coupled with slightly overbought conditions on hourly charts prompted some profit-taking amid a modest pickup in the USD demand.

The pair retreated back below the 1.2200 round-figure mark, albeit has still managed to hold above the Asian session swing lows. The set-up warrants some caution before confirming that corrective bounce might have already run out of the steam and positioning for any further intraday depreciating move.

The mentioned low, around the 1.2130 region, is closely followed by support near the 1.2100 round-figure mark. The latter coincides with 38.2% Fibo. level, which if broken might be seen as a key trigger for bearish traders and drag the pair further towards testing its next major support near mid-1.2000s.

The pair then might extend the downward trajectory further towards the key 1.20 psychological mark before eventually dropping back to the overnight strong horizontal resistance breakpoint, now turned support near the 1.1950-40 region.

On the flip side, the 1.2245-50 region now seems to act as an immediate resistance, above which the pair is likely to make a fresh attempt towards surpassing the 1.2300 mark. Some follow-through buying will reinforce a near-term bullish trend and lift the pair further towards the 1.2400 round-figure mark.

GBP/USD 4-hourly chart


Technical levels to watch


Today last price 1.2203
Today Daily Change -0.0003
Today Daily Change % -0.02
Today daily open 1.2206
Daily SMA20 1.237
Daily SMA50 1.2749
Daily SMA100 1.289
Daily SMA200 1.2671
Previous Daily High 1.223
Previous Daily Low 1.1778
Previous Weekly High 1.24
Previous Weekly Low 1.1412
Previous Monthly High 1.3204
Previous Monthly Low 1.2726
Daily Fibonacci 38.2% 1.2057
Daily Fibonacci 61.8% 1.195
Daily Pivot Point S1 1.1912
Daily Pivot Point S2 1.1619
Daily Pivot Point S3 1.146
Daily Pivot Point R1 1.2365
Daily Pivot Point R2 1.2523
Daily Pivot Point R3 1.2817



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

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD bounces after upbeat COVID-19 cure news

EUR/USD is trading above 1.13, rebounding from the lows. Gilead reported that its drug Remdesevir substantially reduces mortality among COVID-19 patients. The news boosted stocks and weighed on the dollar. US coronavirus statistics are due out.


GBP/USD recaptures 1.26 as the market mood improves

GBP/USD is trading above 1.26 as the market mood improves and the safe-haven dollar retreats. Investors are shrugging off Brexit concerns and focusing on hopes to cure coronavirus. US COVID-19 statistics are due out.


XAU/USD consolidates daily gains above $1,800

After advancing to its highest level since September of 2011 at $1,818 on Wednesday, the XAU/USD pair staged a correction and briefly dropped below $1,800 on Thursday.

Gold News

Cryptocurrencies: War for dominance hit the bedrock of the market

Bitcoin tried to regain market share and activated sales in the Altcoin segment. BTC/USD, ETH/USD and XRP/USD are looking for supports and a rebound to push them to new elative highs. The current compression on the XRP/USD chart could trigger an exploding movement.

Read more

WTI once again breaks $40 per barrel after trading lower in early EU trade

There has been quite the bounce in WTI since the EU session after some strong selling pressure during Thursday and overnight. Once again on Friday's session, the price has taken the USD 40 per barrel handle. 

Oil News