GBP/USD Price Analysis: Death cross, 61.8% golden ratio probe recovery below 1.2100


  • GBP/USD struggles to extend the previous day’s rebound from one-month low, sidelined of late.
  • Oscillators suggest further recovery but death cross on the EMAs and 61.8% Fibonacci retracement level probe bulls.
  • Five-week-old horizontal support area offers extra filters to the south.

GBP/USD fades the previous day’s rebound from a monthly low around 1.2050 heading into Wednesday’s London open. In doing so, the Cable pair justifies the bearish moving average crossover on the four-hour chart below the key Fibonacci retracement level.

That said, the 50-bar Exponential Moving Average (EMA) crosses the 200-bar EMA from above, which in turn portrays the “Death cross” and suggests further downside of the GBP/USD pair. Also challenging the quote is the 61.8% Fibonacci retracement level of January 06-23 upside, near 1.2080.

It should be observed, however, that the gradual rise in the RSI (14) and the recently firmer MACD signals keep buyers hopeful.

As a result, the GBP/USD pair’s run-up beyond the immediate 1.2080 can’t be ruled out. In that case, the 50% Fibonacci retracement and the 200-EMA, respectively near 1.2150 and 1.2200, will be important to watch.

Should the pair remains firmer past 1.2200, it can again try to cross the 1.2445-50 horizontal hurdle.

On the flip side, the 1.2000 psychological magnet precedes the latest swing low near 1.1960 to limit the short-term GBP/USD downside.

Following that, a horizontal area comprising multiple levels marked since January 03 and the previous monthly low, close to 1.1930 and 1.1840 in that order, should lure the pair sellers.

GBP/USD: Four-hour chart

Trend: Limited upside expected

Additional important levels

Overview
Today last price 1.2052
Today Daily Change 0.0012
Today Daily Change % 0.10%
Today daily open 1.204
 
Trends
Daily SMA20 1.2275
Daily SMA50 1.2193
Daily SMA100 1.1816
Daily SMA200 1.1951
 
Levels
Previous Daily High 1.2096
Previous Daily Low 1.1961
Previous Weekly High 1.2418
Previous Weekly Low 1.205
Previous Monthly High 1.2448
Previous Monthly Low 1.1841
Daily Fibonacci 38.2% 1.2044
Daily Fibonacci 61.8% 1.2013
Daily Pivot Point S1 1.1969
Daily Pivot Point S2 1.1898
Daily Pivot Point S3 1.1834
Daily Pivot Point R1 1.2103
Daily Pivot Point R2 1.2167
Daily Pivot Point R3 1.2238

 

 

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