- 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
Technical levels to watch
|Today last price||1.3098|
|Today Daily Change||-0.0052|
|Today Daily Change %||-0.40|
|Today daily open||1.315|
|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.