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

 

 

Share: Feed news

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. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended content

Editors’ Picks

AUD/USD: A tough barrier remains around 0.6800

AUD/USD: A tough barrier remains around 0.6800

AUD/USD failed to maintain the earlier surpass of the 0.6800 barrier, eventually succumbing to the late rebound in the Greenback following the Fed’s decision to lower its interest rates by50 bps.

AUD/USD News
EUR/USD still targets the 2024 peaks around 1.1200

EUR/USD still targets the 2024 peaks around 1.1200

EUR/USD added to Tuesday’s losses after the post-FOMC rebound in the US Dollar prompted the pair to give away earlier gains to three-week highs in the 1.1185-1.1190 band.

EUR/USD News
Gold surrenders gains and drops to weekly lows near $2,550

Gold surrenders gains and drops to weekly lows near $2,550

Gold prices reverses the initial uptick to record highs around the $$2,600 per ounce troy, coming under renewed downside pressure and revisiting the $2,550 zone amidst the late recovery in the US Dollar.

Gold News
Australian Unemployment Rate expected to hold steady at 4.2% in August

Australian Unemployment Rate expected to hold steady at 4.2% in August

The Australian Bureau of Statistics will release the monthly employment report at 1:30 GMT on Thursday. The country is expected to have added 25K new positions in August, while the Unemployment Rate is foreseen to remain steady at 4.2%.

Read more
Ethereum could rally to $2,817 following Fed's 50 bps rate cut

Ethereum could rally to $2,817 following Fed's 50 bps rate cut

Ethereum (ETH) is trading above $2,330 on Wednesday as the market is recovering following the Federal Reserve's (Fed) decision to cut interest rates by 50 basis points. Meanwhile, Ethereum exchange-traded funds (ETF) recorded $15.1 million in outflows.

Read more
Moneta Markets review 2024: All you need to know

Moneta Markets review 2024: All you need to know

VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.

Read More

Forex MAJORS

Cryptocurrencies

Signatures