GBP/USD Price Analysis: Portrays corrective pullback above 1.3900

GBP/USD struggles to extend late-Wednesday’s recovery moves, eases off-late.
Key Fibonacci retracement levels, seven-week-old horizontal hurdle to test the bounce off weekly support.
Strong RSI, sustained trading beyond 200-SMA back the bulls.

Anil Panchal FXStreet

GBP/USD cools down to 1.3930, fails to stretch the previous day’s U-turn from 1.3885, amid Thursday’s Asian session.

The cable followed strong RSI and successful trading above 200-SMA, crossed on Monday, to bounce off a one-week-old horizontal area during late Wednesday.

However, the corrective pullback will soon hit the first hurdle, namely 50% Fibonacci retracement of February-April downside, around 1.3960.

Even if the quote manages to cross the immediate resistance, the key horizontal area established since early March and 61.8% Fibonacci retracement level, respectively near 1.4010 and 1.4020, will test the GBP/USD bulls.

Meanwhile, downside moves below the nearby horizontal support around 1.3915 will aim for a 200-SMA level of 1.3830.

Overall, GBP/USD is likely to remain firm but the upside momentum has a bumpy road ahead.

GBP/USD four-hour chart

Trend: Further recovery expected

Additional important levels

Overview
Today last price	1.3931
Today Daily Change	4 pips
Today Daily Change %	0.03%
Today daily open	1.3927

Trends
Daily SMA20	1.3806
Daily SMA50	1.3874
Daily SMA100	1.3725
Daily SMA200	1.3385

Levels
Previous Daily High	1.395
Previous Daily Low	1.3886
Previous Weekly High	1.3844
Previous Weekly Low	1.3669
Previous Monthly High	1.4017
Previous Monthly Low	1.3671
Daily Fibonacci 38.2%	1.391
Daily Fibonacci 61.8%	1.3925
Daily Pivot Point S1	1.3892
Daily Pivot Point S2	1.3857
Daily Pivot Point S3	1.3828
Daily Pivot Point R1	1.3956
Daily Pivot Point R2	1.3985
Daily Pivot Point R3	1.402

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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