GBP/USD Price Analysis: Descending triangle keeps buyers hopeful around 1.2250

GBP/USD dribbles inside a bullish chart pattern after two-day inaction.
Firmer RSI, horizontal support add strength to the bullish bias.
100-SMA acts as an extra filter to the north, bears could aim for yearly low on breaking 1.2160.

Anil Panchal FXStreet

GBP/USD treads water around 1.2260 during Friday’s Asian morning, following the last two days’ dormancy inside a falling triangle bullish formation.

Adding strength to the Cable pair’s upside bias is the firmer RSI and a six-week-old horizontal support area that also comprises the stated triangle’s lower line.

That said, the GBP/USD buyers need validation from 1.2285 to trigger the upside momentum. Even so, the 100-SMA could test the bulls around 1.2345.

In a case where the quote rises past 1.2345, the previous weekly top surrounding 1.2405 and multiple troughs marked during late May and early June, around 1.2470 could challenge the pair’s further advances.

On the contrary, a downside break of the 1.2160 could quickly fetch the GBP/USD prices towards the 23.6% Fibonacci retracement level of the May-June downside, near 1.2100.

The bearish bias, if persist past 1.2100, won’t hesitate to challenge the yearly low surrounding 1.1933. During the fall, the 1.2000 psychological magnet could offer an intermediate halt.

Overall, GBP/USD is up for consolidating recent losses ahead of the UK Retail Sales for May.

GBP/USD: Four-hour chart

Trend: Further upside expected

Additional important levels

Overview
Today last price	1.2259
Today Daily Change	-0.0007
Today Daily Change %	-0.06%
Today daily open	1.2266

Trends
Daily SMA20	1.241
Daily SMA50	1.2514
Daily SMA100	1.2898
Daily SMA200	1.3206

Levels
Previous Daily High	1.2315
Previous Daily Low	1.2161
Previous Weekly High	1.2407
Previous Weekly Low	1.1934
Previous Monthly High	1.2667
Previous Monthly Low	1.2155
Daily Fibonacci 38.2%	1.222
Daily Fibonacci 61.8%	1.2256
Daily Pivot Point S1	1.218
Daily Pivot Point S2	1.2094
Daily Pivot Point S3	1.2026
Daily Pivot Point R1	1.2334
Daily Pivot Point R2	1.2401
Daily Pivot Point R3	1.2487

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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