GBP/USD Price Analysis: Drops to fresh monthly low, focus on 1.2260-50 support area

GBP/USD drops for the fourth consecutive day, takes offer to refresh monthly bottom.
Sustained break of the key SMAs, bearish MACD signals favor bears ahead of the UK’s monthly data dump.
Five-week-old horizontal support zone restricts immediate downside amid oversold RSI.

Anil Panchal FXStreet

GBP/USD bears keep reins for the fourth consecutive day while refreshing the one-month low during Monday’s mid-Asian session. In doing so, the cable pair takes offers to 1.2270 as it renews the multi-day low by the press time.

However, oversold RSI (14) can join multiple levels marked since May 09 to challenge the pair’s further downside around 1.2260-50.

Failing to do so can quickly fetch the quote towards the yearly low of 1.2155 before directing the GBP/USD bears towards the 1.2000 psychological magnet.

On the contrary, 200-SMA and 100-SMA can challenge the corrective pullback around 1.2468 and 1.2540 in that order.

Also challenging the short-term upside moves of the GBP/USD prices is a descending trend line resistance from mid-April, around 1.2550 by the press time.

To sum up, GBP/USD remains on the bear’s radar ahead of the monthly data dump, as well as monetary policy meetings of the Fed and the Bank of England (BOE). However, the immediate downside has multiple challenges and hence a corrective pullback can’t be ruled out.

GBP/USD: Four-hour chart

Trend: Limited weakness expected

Additional important levels

Overview
Today last price	1.2271
Today Daily Change	-0.0044
Today Daily Change %	-0.36%
Today daily open	1.2315

Trends
Daily SMA20	1.2515
Daily SMA50	1.265
Daily SMA100	1.2998
Daily SMA200	1.3271

Levels
Previous Daily High	1.2518
Previous Daily Low	1.2301
Previous Weekly High	1.2599
Previous Weekly Low	1.2301
Previous Monthly High	1.2667
Previous Monthly Low	1.2155
Daily Fibonacci 38.2%	1.2384
Daily Fibonacci 61.8%	1.2435
Daily Pivot Point S1	1.2238
Daily Pivot Point S2	1.2161
Daily Pivot Point S3	1.2022
Daily Pivot Point R1	1.2455
Daily Pivot Point R2	1.2595
Daily Pivot Point R3	1.2671

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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