GBP/USD Price Analysis: Cable bears cheer 50-DMA break to approach 1.2400

GBP/USD takes offers to refresh intraday low, extends previous day’s pullback from three-week high.
Steady RSI, downside break of 50-DMA join U-turn from key horizontal resistance zone to keep Cable bears hopeful.
Sluggish MACD, 11-week-old ascending support line puts a floor under Pound Sterling price.

Anil Panchal FXStreet

GBP/USD remains on the back foot around 1.2430 as it stretches the post-NFP reversal from a three-week high during the early hours of Monday’s Asian session. In doing so, the Cable pair drops below the 50-DMA support while extending the previous day’s U-turn from a horizontal resistance area comprising multiple levels marked since mid-April.

Not only the U-turn from the key resistance zone and a downside break of the 50-DMA but the steady RSI (14) line also suggest further downside of the Pound Sterling. With this, the quote is all set to prod the 1.2400 round figure.

However, the looming bull cross on the MACD indicator highlights the importance of an upward-sloping support line from mid-May, close to 1.2360 by the press time.

Even if the GBP/USD price drops below 1.2360, the 100-DMA support of around 1.2300 could act as the last defense of the bulls.

On the contrary, the 50-DMA and the aforementioned resistance area, respectively near 1.2460 and 1.2540-50, cap the GBP/USD pair’s recovery.

Also acting as an upside filter is the 1.2600 round figure, a break of which could quickly propel the Cable pair towards the yearly high marked in May near 1.2680.

GBP/USD: Daily chart

Trend: Further downside expected

Additional important levels

Overview
Today last price	1.2429
Today Daily Change	-0.0021
Today Daily Change %	-0.17%
Today daily open	1.245

Trends
Daily SMA20	1.2463
Daily SMA50	1.2453
Daily SMA100	1.23
Daily SMA200	1.1994

Levels
Previous Daily High	1.2545
Previous Daily Low	1.2442
Previous Weekly High	1.2545
Previous Weekly Low	1.2327
Previous Monthly High	1.268
Previous Monthly Low	1.2308
Daily Fibonacci 38.2%	1.2481
Daily Fibonacci 61.8%	1.2505
Daily Pivot Point S1	1.2413
Daily Pivot Point S2	1.2376
Daily Pivot Point S3	1.2309
Daily Pivot Point R1	1.2516
Daily Pivot Point R2	1.2582
Daily Pivot Point R3	1.2619

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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