GBP/USD Price Analysis: Keeps the red below 1.3100 mark, downside seems limited


  • GBP/USD witnessed a modest pullback from resistance marked by 61.8% Fibo. level.
  • Prospects for the emergence of some dip-buying should help any meaningful slide.

The GBP/USD pair maintained its offered tone through the early North American session and was last seen trading near the lower end of its daily trading range, below the 1.3100 mark. The intraday downtick, so far, has managed to find decent support near the 50% Fibonacci level of the 1.3482-1.2676 recent slide.

Given the overnight breakthrough a one-week-old descending trend-line resistance, the bias remains tilted in favour of bullish traders. The constructive outlook is further reinforced by the fact that oscillators on the daily chart maintained their bullish bias and have also eased from the overbought territory on the 4-hourly chart.

That said, it will still be prudent to wait for some follow-through buying beyond the overnight swing high, around the 1.3175 region, which coincides with the 61.8% Fibo. level, before positioning for any further appreciating move. The GBP/USD pair might then aim to surpass the 1.3200 mark and test the 1.3235 resistance zone.

On the flip side, any further slide below the 50% Fibo. level might still be seen as an opportunity to initiate fresh bullish positions amid the latest optimism over the resumption of Brexit talks. This, in turn, should help limit the downside near the 1.3030-25 horizontal support, which is followed by the key 1.3000 psychological mark.

The latter marks the mentioned trend-line resistance breakpoint and should now act as a strong base for the GBP/USD pair. Failure to defend the mentioned support levels will negate any prospects for any further near-term appreciating move, instead prompt some aggressive technical selling amid resurgent USD demand.

GBP/USD 4-hourly chart

fxsoriginal

Technical levels to watch

GBP/USD

Overview
Today last price 1.3098
Today Daily Change -0.0052
Today Daily Change % -0.40
Today daily open 1.315
 
Trends
Daily SMA20 1.2929
Daily SMA50 1.3015
Daily SMA100 1.2851
Daily SMA200 1.271
 
Levels
Previous Daily High 1.3177
Previous Daily Low 1.294
Previous Weekly High 1.3083
Previous Weekly Low 1.2863
Previous Monthly High 1.3482
Previous Monthly Low 1.2676
Daily Fibonacci 38.2% 1.3086
Daily Fibonacci 61.8% 1.303
Daily Pivot Point S1 1.3001
Daily Pivot Point S2 1.2851
Daily Pivot Point S3 1.2763
Daily Pivot Point R1 1.3238
Daily Pivot Point R2 1.3326
Daily Pivot Point R3 1.3475

 

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD hits fresh two-month highs amid dollar weakness

EUR/USD has hit new two-month highs above 1.1940 as the dollar resumes its decline. Optimism about the US transition and covid vaccines is weighing on the safe-haven dollar. 

EUR/USD News

GBP/USD falls toward 1.33 amid Brexit acrimony

GBP/USD is falling toward 1.33 as both the EU and the UK are busy blaming each other for an impasse in Brexit talks. The thorny issues remain fisheries, governance and setting a level playing field.

GBP/USD News

XAU/USD attempting to bounce up from $1,775 low

Gold futures accelerated heir downtrend from last week highs near $1,900, breaking below the 200-day SMA, at $1,800 area, to hit its lowest prices in nearly five months, at $1,775.

Gold news

Dollar offered ahead of the weekend

Equities are finishing the week on a firm tone, while the US dollar remains heavy. In the Asia Pacific, only Australia and India did not end the week on a firm note.

Read more

Black Friday 2020 Discounts!

Learn to trade with the best! Don't miss the most experienced traders and speakers in FXStreet Premium webinars. Also if you are a Premium member you can get real-time FXS Signals and receive daily market analysis with the best forex insights!

More info

Forex MAJORS

Cryptocurrencies

Signatures