• GBP/USD snaps three-day downtrend around two-year low.
  • Bears take a breather inside trend continuation pattern, bullish RSI hints at corrective pullback.
  • 50-SMA, 13-day-old resistance line challenge recovery moves, weekly support line adds to the downside filters.

GBP/USD licks its wounds as sellers pause after refreshing a two-year low, picking up bids to 1.2360 inside an immediate rectangle formation.

In doing so, the cable pair prints the first daily gains in four underpinned by the bullish MACD signals.

However, the 50-SMA and upper line of a two-week-old falling wedge bullish chart pattern, respectively near 1.2460 and 1.2485, challenges the GBP/USD pair’s short-term rebound.

It’s worth noting, however, that the quote’s rally beyond 1.2485 confirms the bullish chart pattern and directs, theoretically, the upside momentum towards the 1.3200 level. During the rise, 1.2640, 1.2780 and the 1.3000 threshold may offer intermediate halts.

On the contrary, the support line of the three-day-old rectangle, near 1.2260 restricts the immediate downside of the GBP/USD prices.

Also acting as the short-term key support is the mentioned wedge’s lower line, close to 1.2230 by the press time.

In a case where GBP/USD drops below 1.2230, a south-run towards May 2020 lows near 1.2075 can’t be ruled out.

GBP/USD: Four-hour chart

Trend: Limited recovery expected

Additional important levels

Overview
Today last price 1.2359
Today Daily Change 0.0027
Today Daily Change % 0.22%
Today daily open 1.2332
 
Trends
Daily SMA20 1.2738
Daily SMA50 1.2981
Daily SMA100 1.3253
Daily SMA200 1.343
 
Levels
Previous Daily High 1.2406
Previous Daily Low 1.2261
Previous Weekly High 1.2638
Previous Weekly Low 1.2276
Previous Monthly High 1.3167
Previous Monthly Low 1.2411
Daily Fibonacci 38.2% 1.2317
Daily Fibonacci 61.8% 1.2351
Daily Pivot Point S1 1.226
Daily Pivot Point S2 1.2188
Daily Pivot Point S3 1.2115
Daily Pivot Point R1 1.2405
Daily Pivot Point R2 1.2478
Daily Pivot Point R3 1.2551

 

 

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