GBP/USD Price Analysis: Downside momentum loss to support cable, 1.1650 a critical hurdle


  • A symmetrical triangle formation near monthly lows indicates a loss of momentum and supports a pullback move.
  • Declining 20-and 50-EMAs still favor the downside bias.
  • The RSI (14) is attempting to recapture the neutral range of 40.00-60.00

The GBP/USD pair is displaying back-and-forth moves in a narrow range of 1.1609-1.1623 in the early Tokyo session. The cable has turned sideways after defending the critical support of 1.1600. Broadly, the asset is oscillating in a wider range of 1.1607-1.1645 and is likely to display volumes and wider ticks.

A Symmetrical Triangle chart formation on an hourly scale near a two-year low is displaying signs of momentum loss, which may deliver a solid pullback move ahead. The upper portion of the above-mentioned chart pattern is placed from Tuesday’s high at 1.1761 while the lower portion is plotted from Monday’s low at 1.1645.

The 20-period Exponential Moving Average (EMA) at 1.1634 has acted as a major hurdle for the pound bulls. Also, the 50-EMA at 1.1661 is declining, which still favors a downside bias.

Meanwhile, the Relative Strength Index (RSI) is attempting to shift into the neutral range of 40.00-60.00 from the bearish range of 20.00-40.00 as exhaustion signals in the downside momentum are in play.

A break above Wednesday’s average price at 1.1650 will send the asset towards the round-level resistance at 1.1700, followed by Tuesday’s high near 1.1760.

Alternatively, a downside below Wednesday’s low near 1.1600 will drag the asset towards 19 March 2020 low at 1.1472. A breach of the latter will drag cable towards a 37-year low at 1.1410.

GBP/USD hourly chart

GBP/USD

Overview
Today last price 1.1617
Today Daily Change -0.0038
Today Daily Change % -0.33
Today daily open 1.1655
 
Trends
Daily SMA20 1.1969
Daily SMA50 1.2026
Daily SMA100 1.2278
Daily SMA200 1.2818
 
Levels
Previous Daily High 1.1761
Previous Daily Low 1.1621
Previous Weekly High 1.19
Previous Weekly Low 1.1717
Previous Monthly High 1.2246
Previous Monthly Low 1.176
Daily Fibonacci 38.2% 1.1674
Daily Fibonacci 61.8% 1.1707
Daily Pivot Point S1 1.1597
Daily Pivot Point S2 1.1539
Daily Pivot Point S3 1.1457
Daily Pivot Point R1 1.1736
Daily Pivot Point R2 1.1818
Daily Pivot Point R3 1.1876

 

 

 

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