GBP/USD Price Analysis: Cable retreats towards resistance-turned-support near 1.2000

GBP/USD pares the first weekly gain in three as traders brace for the key data/events.
Upside break of one-month-old descending trend line, bullish MACD signals favor buyers.
Bulls need clear break of 50-DMA to retake control; 200-DMA puts a floor under the Cable price.

Anil Panchal FXStreet

GBP/USD bulls take a breather around 1.2030 during Monday’s initial Asian session, after posting the biggest weekly jump since mid-January.

In doing so, the Cable pair fails to extend the previous day’s upside break of the one-month-old descending resistance line, now support around 1.2020.

However, the Cable price is yet to drop back below the resistance-turned-support and the MACD signals are bullish too, which in turn keeps the GBP/USD buyers hopeful amid steady RSI. Adding strength to the upside bias is the quote’s successful trading beyond the 200-DMA.

In addition to the 200-DMA support of around 1.1900, an upward-sloping trend line from early January, close to 1.1940 at the latest, also acts as the short-term key support for the GBP/USD pair.

In a case where the GBP/USD remains bearish past 1.1900, lows marked during January 2023 and late November 2022, respectively near 1.1840 and 1.1760, will be in focus.

On the flip side, a daily closing beyond the 50-DMA hurdle surrounding 1.2140 could quickly propel the Cable pair toward the mid-February swing high surrounding 1.2270.

It’s worth noting, however, that the GBP/USD pair’s successful trading above 1.2270 enables the buyers to aim for the 2.5-month-old horizontal resistance area nearing 1.2445-50.

GBP/USD: Daily chart

Trend: Limited upside expected

Additional important levels

Overview
Today last price	1.2033
Today Daily Change	-0.0012
Today Daily Change %	-0.10%
Today daily open	1.2045

Trends
Daily SMA20	1.2047
Daily SMA50	1.2141
Daily SMA100	1.1985
Daily SMA200	1.1916

Levels
Previous Daily High	1.2049
Previous Daily Low	1.1943
Previous Weekly High	1.2143
Previous Weekly Low	1.1922
Previous Monthly High	1.2402
Previous Monthly Low	1.1915
Daily Fibonacci 38.2%	1.2008
Daily Fibonacci 61.8%	1.1983
Daily Pivot Point S1	1.1975
Daily Pivot Point S2	1.1906
Daily Pivot Point S3	1.1869
Daily Pivot Point R1	1.2081
Daily Pivot Point R2	1.2118
Daily Pivot Point R3	1.2188

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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