GBP/USD Price Analysis: Clings to gains near session tops, around 1.3830-35 area


  • GBP/USD staged a goodish rebound from a short-term ascending trend-channel support.
  • The set-up favours bullish traders and supports prospects for a further appreciating move.
  • A sustained break below the 1.3780 region is needed to negate the constructive outlook.

The GBP/USD pair built on its steady intraday positive through the first half of the European session and climbed to fresh daily tops, around the 1.3835 region in the last hour. 

The British pound got a minor lift following the release of hotter-than-expected UK consumer inflation figures. On the other hand, the US dollar bulls remained on the defensive amid fading hopes for the Fed taper announcement at the upcoming meeting on September 20-21. The combination of factors assisted the GBP/USD pair to stall the previous day's pullback from the 1.3910-15 area, or the highest level since August 8 touched in reaction to the softer US CPI report.

Looking at the technical picture, the GBP/USD pair showed some resilience below the 1.3800 mark and attracted fresh buying in the vicinity of the lower end of an ascending trend channel. The mentioned support, currently around the 1.3780 region, should now act as a key pivotal point for short-term traders and help determine the next leg of a directional move.

Meanwhile, technical indicators on the daily chat are holding with a mild bullish bias and have again started gaining positive traction on hourly charts. The set-up supports prospects for an extension of the intraday move back towards the 1.3885-90 supply zone. A subsequent strength beyond the 1.3900 mark and the overnight swing highs will be seen as a fresh trigger for bullish traders and allow the GBP/USD pair to aim back to reclaim the 1.4000 psychological mark.

On the flip side, the 1.3800 mark, coinciding with 200-period SMA on the 4-hour chart now seems to protect the immediate downside. This is followed by the mentioned ascending channel support, which if broken will negate any near-term positive bias and prompt aggressive technical selling. The GBP/USD pair might then accelerate the slide towards testing intermediate support near the 1.3730-25 region before eventually dropping to the 1.3700 mark.

GBP/USD 4-hour chart

fxsoriginal

Technical levels to watch

GBP/USD

Overview
Today last price 1.3833
Today Daily Change 0.0023
Today Daily Change % 0.17
Today daily open 1.381
 
Trends
Daily SMA20 1.377
Daily SMA50 1.3807
Daily SMA100 1.3916
Daily SMA200 1.383
 
Levels
Previous Daily High 1.3913
Previous Daily Low 1.3804
Previous Weekly High 1.3889
Previous Weekly Low 1.3726
Previous Monthly High 1.3958
Previous Monthly Low 1.3602
Daily Fibonacci 38.2% 1.3846
Daily Fibonacci 61.8% 1.3871
Daily Pivot Point S1 1.3771
Daily Pivot Point S2 1.3733
Daily Pivot Point S3 1.3662
Daily Pivot Point R1 1.3881
Daily Pivot Point R2 1.3952
Daily Pivot Point R3 1.399

 

 

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