GBP/USD Price Analysis: Finds offers near trendline and 100-MA confluence at 1.1950
- The confluence of trendline and 100-MA has acted as a hurdle for the pound bulls.
- A (40.00-60.00) range by the RSI (14) hints at a consolidation ahead.
- An establishment below the psychological support of 1.2000 has activated a longer-term downside bias.
The GBP/USD pair is displaying a lackluster performance in the early Tokyo session as the traded range is peanuts against usual. After a volatile Wednesday, the cable looks to turn sideways to ease-off standard deviation first and then will look for a decisive move. On a broader note, after surrendering the psychological support of 1.2000, odds are favoring for a downside bias. Therefore, investors should take more precautions on taking longs.
The greenback bulls have comfortably defended the confluence of the downward sloping trendline plotted from June 27 high at 1.2324 and the 100-period Simple Moving Average (SMA) near 1.1950. Also, the cable has slipped below the 20-period Exponential Moving Average (EMA) at 1.1900, which signals that the short-term trend has also turned southwards.
Meanwhile, the Relative Strength Index (RSI) (14) has shifted into the 40.00-60.00 range, which signals a consolidation ahead.
The cable is expected to display more losses if the asset drops below Monday’s low at 1.1866. An occurrence of the same will drag the asset to the round-level support of 1.1800, followed by a 26 March 2020 low at 1.1777.
Alternatively, a decisive move above Friday’s high of 1.2056 will send the asset towards July 4 high at 1.2161. A breach of the latter will drive the cable towards June 28 high at 1.2292.
GBP/USD hourly chart
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Author
Sagar Dua
FXStreet
Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.
