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GBP/USD Price Analysis: Fades bounce off 100-SMA but bullish bias remains intact beyond 1.2400

  • GBP/USD struggles to defend the first daily gains in three, retreats from intraday high.
  • 100-SMA, one-week-old ascending trend line restricts immediate downside; bearish MACD signals prod Cable pair buyers.
  • 200-SMA holds the gate for Sterling bear’s welcome.

GBP/USD portrays pre-Fed consolidation near 1.2490 as it retreats from its intraday high heading into Wednesday’s London open. Even so, the Cable pair remains firmer for the first day in three. That said, the quote’s latest pullback could be linked to the bearish MACD signals, apart from the cautious mood ahead of the Federal Open Market Committee (FOMC) monetary policy meeting announcements.

Also read: GBP/USD nears 1.2500 as doubts over Fed's role in banking turmoil weigh on US Dollar

However, the GBP/USD pair’s sustained trading beyond the 100-SMA and an ascending support line from April 21, respectively near 1.2460 and 1.2440, keeps the buyers hopeful.

Even if the Cable pair breaks the 1.2440 trend line support, the 200-SMA level of around the 1.2400 threshold can prod the GBP/USD bears.

In a case where the quote remains bearish past 1.2400, lows marked during April 17 and 10, close to 1.2355 and 1.2345, can act as the last defenses of the GBP/USD buyers before directing the pair towards the previous monthly low of near 1.2275.

On the contrary, GBP/USD recovery needs validation from the 1.2500 round figure to challenge a downward-sloping resistance line from the last Friday, close to 1.2520 at the latest.

Following that, a one-month-old ascending resistance line, near 1.2565, precedes the 1.2600 round figure to challenge the GBP/USD buyers targeting the one-year high of around 1.2665.

GBP/USD: Four-hour chart

Trend: Further upside expected

Additional important levels

Overview
Today last price1.2499
Today Daily Change0.0032
Today Daily Change %0.26%
Today daily open1.2467
 
Trends
Daily SMA201.2453
Daily SMA501.2267
Daily SMA1001.2215
Daily SMA2001.1944
 
Levels
Previous Daily High1.2512
Previous Daily Low1.2436
Previous Weekly High1.2584
Previous Weekly Low1.2387
Previous Monthly High1.2584
Previous Monthly Low1.2275
Daily Fibonacci 38.2%1.2465
Daily Fibonacci 61.8%1.2483
Daily Pivot Point S11.2431
Daily Pivot Point S21.2395
Daily Pivot Point S31.2355
Daily Pivot Point R11.2508
Daily Pivot Point R21.2548
Daily Pivot Point R31.2584

Author

Anil Panchal

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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