GBP/USD Price Analysis: Keeps pullback from 50-DMA near 1.1300

GBP/USD reverses from one-week high as sellers approach 21-DMA, monthly support line.
Bullish MACD signals, firmer RSI (14) keeps buyers hopeful.
One-month-old horizontal support adds to the downside filters.

Anil Panchal FXStreet

GBP/USD stays defensive around a one-month-long support line, after reversing from the highest levels in a week, to 1.1300 during early Monday morning in Europe.

In doing so, the Cable pair reverses from the 50-DMA while declining back towards an upward-sloping support line from September 28.

Given the bullish MACD signals and the steady RSI, the GBP/USD prices are likely to remain firmer unless breaking the aforementioned immediate support line surrounding 1.1230.

Even if the quote drops below 1.1260 support, the 21-DMA level near 1.1155 and the one-month-old horizontal support near 1.0935 could challenge the GBP/USD bears.

It should be noted that a clear downside break of 1.0935 won’t hesitate to challenge the record low of 1.0339. However, the 1.0650 and 1.0540 levels may offer intermediate halts during the fall.

Alternatively, a clear upside break of the 50-DMA hurdle surrounding 1.1415 could push the GBP/USD buyers toward the monthly high near 1.1490.

Following that, the 61.8% Fibonacci retracement level of the pair’s August-September declines and September’s peak, close to 1.1545 and 1.1740 in that order, will act as extra barriers to the north for the GBP/USD pair buyers to watch.

GBP/USD: Daily chart

Trend: Recovery expected

Additional important levels

Overview
Today last price	1.1306
Today Daily Change	0.0006
Today Daily Change %	0.05%
Today daily open	1.13

Trends
Daily SMA20	1.115
Daily SMA50	1.1429
Daily SMA100	1.1784
Daily SMA200	1.2419

Levels
Previous Daily High	1.1315
Previous Daily Low	1.106
Previous Weekly High	1.144
Previous Weekly Low	1.106
Previous Monthly High	1.1738
Previous Monthly Low	1.0339
Daily Fibonacci 38.2%	1.1218
Daily Fibonacci 61.8%	1.1158
Daily Pivot Point S1	1.1135
Daily Pivot Point S2	1.097
Daily Pivot Point S3	1.0881
Daily Pivot Point R1	1.139
Daily Pivot Point R2	1.148
Daily Pivot Point R3	1.1645

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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