GBP/USD Price Analysis: In search of a firm direction, flat-lined above mid-1.2400s


  • GBP/USD seesawed between tepid gains/minor losses through the mid-European session on Friday.
  • Neutral oscillators on hourly/daily charts warrant some caution before placing fresh directional bets.

The GBP/USD pair had some good two-way price moves on Friday and now seems to have stabilized just above mid-1.2400s, nearly unchanged for the day.

Looking at the technical picture, the pair this week confirmed a near-term bullish break through an important confluence resistance comprising of 200-hour SMA and a three-week-old descending trend-line. However, the subsequent positive move faltered ahead of mid-1.2500s on Thursday. The mentioned level marks a resistance representing the 50% Fibonacci level of the 1.2813-1.2252 recent log down.

Meanwhile, neutral technical indicators on hourly/daily charts haven't been supportive of any firm near-term direction. This, in turn, warrants some caution and also makes it prudent to wait for a sustained move in either direction before positioning for the pair's near-term trajectory.

In the meantime, the 200-hour SMA, around the 1.2415 region, is likely to protect the immediate downside. This is followed by the 23.6% Fibo. level support, around the 1.2380 region, below which the pair might slide back to test the trend-line resistance breakpoint, around mid-1.2300s.

Conversely, a sustained move beyond the key 1.2500 psychological mark has the potential to lift the pair back towards the 1.2540-50 supply zone (50% Fibo. level). Some follow-through buying has the potential to lift the pair towards the 1.2600 mark, which coincides with the 61.8% Fibo. level.

GBP/USD 1-hourly chart

fxsoriginal

Technical levels to watch

GBP/USD

Overview
Today last price 1.2469
Today Daily Change 0.0001
Today Daily Change % 0.01
Today daily open 1.2468
 
Trends
Daily SMA20 1.2516
Daily SMA50 1.2421
Daily SMA100 1.2462
Daily SMA200 1.2692
 
Levels
Previous Daily High 1.253
Previous Daily Low 1.2456
Previous Weekly High 1.2543
Previous Weekly Low 1.2314
Previous Monthly High 1.2813
Previous Monthly Low 1.2252
Daily Fibonacci 38.2% 1.2484
Daily Fibonacci 61.8% 1.2502
Daily Pivot Point S1 1.244
Daily Pivot Point S2 1.2411
Daily Pivot Point S3 1.2366
Daily Pivot Point R1 1.2514
Daily Pivot Point R2 1.2559
Daily Pivot Point R3 1.2587

 

 

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