GBP/USD Price Analysis: Fades bounce off 200-HMA around weekly hurdle


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  • GBP/USD pares the first daily loss in three, retreats from intraday high top of late.
  • One-week-old horizontal resistance area tests Cable buyers.
  • RSI, MACD favor further upside, 200-HMA restricts the bear’s entry.

GBP/USD extends pullback from intraday high to 1.2000 as the Cable traders consolidate the first daily gains in three heading into Tuesday’s London open.

In doing so, the quote retreats from a one-week-long horizontal resistance area ahead of the key event, namely Bank of England (BOE) Governor Andrew Bailey’s testimony before the Lords Economic Affairs Committee.

It should, however, be noted that the bullish signals from the Moving Average Convergence and Divergence (MACD) indicator and upbeat Relative Strength Index (RSI), placed at 14, keep the GBP/USD pair buyers hopeful.

That said, the 200-HMA level surrounding 1.1955, challenges intraday sellers of the pair ahead of the 61.8% Fibonacci retracement level of November 21-24 upside, near 1.1920.

In a case where the GBP/USD bears keep the reins past 1.1920, the 1.1900 threshold may act as an intermediate halt during the likely south-run targeting the previous weekly low of 1.1778.

On the flip side, recovery moves need to cross the aforementioned immediate horizontal near 1.2025-30 to retake control.

Even so, a convergence of the previous support line from November 21 and a downward-sloping trend line from the last Thursday, close to 1.2100, will be a tough nut to crack for the GBP/USD buyers.

GBP/USD: Hourly chart

Trend: Pullback expected

Additional important levels

Overview
Today last price 1.2007
Today Daily Change 0.0059
Today Daily Change % 0.49%
Today daily open 1.1948
 
Trends
Daily SMA20 1.173
Daily SMA50 1.1428
Daily SMA100 1.1645
Daily SMA200 1.2176
 
Levels
Previous Daily High 1.2118
Previous Daily Low 1.1941
Previous Weekly High 1.2154
Previous Weekly Low 1.1779
Previous Monthly High 1.1646
Previous Monthly Low 1.0924
Daily Fibonacci 38.2% 1.2009
Daily Fibonacci 61.8% 1.205
Daily Pivot Point S1 1.1887
Daily Pivot Point S2 1.1825
Daily Pivot Point S3 1.1709
Daily Pivot Point R1 1.2064
Daily Pivot Point R2 1.218
Daily Pivot Point R3 1.2242

 

 

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