GBP/USD Price Analysis: Pullback from 1.2110 resistance confluence lures Cable bears

GBP/USD remains pressured after reversing from the short-term key resistance confluence.
Convergence of 200-EMA, one-month-old descending trend line challenges Cable buyers.
Double bottoms around 1.1920-15 restricts short-term downside of the pair.

Anil Panchal FXStreet

GBP/USD holds lower ground near the intraday bottom surrounding 1.2010, picking up bids of late, as bears keep the reins during early Wednesday. In doing so, the Cable pair justifies the previous day’s pullback from an important resistance, as well as the looming bear cross on the MACD.

While the failure to cross the 1.2110 hurdle, comprising 200-Exponential Moving Average (EMA) and a one-month-old downward-sloping resistance line, keeps the GBP/USD bears hopeful, a clear break of the 1.2100 threshold becomes necessary for the seller’s conviction.

Following that, the “double bottom” bullish formation around 1.1920-15 will be crucial to watch as a downside break of the same won’t hesitate to drag the GBP/USD price towards January’s low near 1.1840.

Alternatively, the pair’s recovery past the 1.2110 resistance confluence needs to cross a one-week-long horizontal resistance near 1.2150 to convince GBP/USD buyers.

In that case, the mid-February swing high of 1.2270 appears the imminent target for the bulls ahead of aiming for the previous monthly top surrounding 1.2400.

It should, however, be noted that the pair’s sustained trading beyond 1.2400 will be difficult as the multiple tops around 1.2445-50 could challenge the bulls afterward.

To sum up, GBP/USD is likely to decline further but the downside room appears limited.

GBP/USD: Four-hour chart

Trend: Limited downside expected

Additional important levels

Overview
Today last price	1.2025
Today Daily Change	-0.0002
Today Daily Change %	-0.02%
Today daily open	1.2027

Trends
Daily SMA20	1.2079
Daily SMA50	1.2144
Daily SMA100	1.1961
Daily SMA200	1.1925

Levels
Previous Daily High	1.2143
Previous Daily Low	1.2027
Previous Weekly High	1.2148
Previous Weekly Low	1.1928
Previous Monthly High	1.2402
Previous Monthly Low	1.1915
Daily Fibonacci 38.2%	1.2071
Daily Fibonacci 61.8%	1.2099
Daily Pivot Point S1	1.1988
Daily Pivot Point S2	1.1949
Daily Pivot Point S3	1.1872
Daily Pivot Point R1	1.2105
Daily Pivot Point R2	1.2182
Daily Pivot Point R3	1.2221

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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