GBP/USD Price Analysis: Pierces through monthly key support with eyes on 200-SMA

GBP/USD takes offers to refresh intraday low, pokes short-term key support line.
Sustained trading below 100-SMA keeps sellers hopeful of visiting 200-SMA.
Two-week-old horizontal area restricts immediate upside before the monthly high.

Anil Panchal FXStreet

GBP/USD sellers attack monthly low as it drops to 1.2090 heading into Tuesday’s London open. That said, the quote prints four-day downtrend as it approaches the monthly bottom amid broad US Dollar rebound.

In doing so, the Cable pair traders attack a one-month-old ascending trend line, after multiple failures to cross the 100-SMA. Additionally favoring the pair sellers could be the bearish MACD signals.

As a result, the GBP/USD prices could drop to the 200-SMA level surrounding 1.1980. However, the 1.2000 psychological magnet and the late November swing lows near 1.1900 may restrict the quote’s south run.

In a case where the Cable pair remains bearish past 1.1900, the mid-November swing low near 1.1760 could gain the market’s attention.

Alternatively, the support-turned-resistance line near 1.2130 and the 100-SMA level surrounding 1.2200 could challenge GBP/USD bulls.

Following that, the 1.2300 round figure and a fortnight-old horizontal region near 1.2345 could challenge the pair’s further upside before directing buyers towards the monthly peak of 1.2445.

Overall, GBP/USD is likely to decline further but the 200-SMA and multiple lows marked during late November could restrict short-term downside.

GBP/USD: Four-hour chart

Trend: Further downside expected

Additional important levels

Overview
Today last price	1.2113
Today Daily Change	-0.0031
Today Daily Change %	-0.26%
Today daily open	1.2144

Trends
Daily SMA20	1.2161
Daily SMA50	1.1754
Daily SMA100	1.1674
Daily SMA200	1.2096

Levels
Previous Daily High	1.2242
Previous Daily Low	1.2121
Previous Weekly High	1.2447
Previous Weekly Low	1.212
Previous Monthly High	1.2154
Previous Monthly Low	1.1147
Daily Fibonacci 38.2%	1.2167
Daily Fibonacci 61.8%	1.2196
Daily Pivot Point S1	1.2096
Daily Pivot Point S2	1.2048
Daily Pivot Point S3	1.1974
Daily Pivot Point R1	1.2217
Daily Pivot Point R2	1.229
Daily Pivot Point R3	1.2339

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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