GBP/USD Price Analysis: Rejection from key resistance line highlights 1.2150 support confluence

GBP/USD remains sidelined after rising to the highest level in five months.
Overbought RSI, two-month-old resistance line challenge further upside.
Bear need validation from the convergence of 200-DMA, previous resistance line from late June.

Anil Panchal FXStreet

GBP/USD treads water around mid-1.2200s after rising to the highest level since late June the previous day. In doing so the Cable pair portrays the market’s cautious mood ahead of the key US employment data while also justifying the price-negative technical signals.

Among them, overbought conditions of the Relative Strength Index (RSI) line, placed at 14, gain major attention as the quote struggles after a two-day uptrend that refreshed the multi-day peak.

Also challenging the GBP/USD bulls is the upward-sloping resistance line from early October, currently around 1.2280.

Just in case a wild move cracks the 1.2280 hurdle, the 1.2300 round figure and the mid-June high near 1.2410 could act as additional upside filters to watch during the quote’s further advances.

On the contrary, pullback remains elusive unless the GBP/USD pair remains beyond 1.2150 level comprising the 200-DMA and the resistance-turned-support line from late June.

Additionally, a convergence of the August month’s high and the weekly bottom also constitutes short-term key support near 1.1900 and may test the bears before giving them control.

Following that, tops marked in September and October, respectively near 1.1735 and 1.1645 will be in focus.

GBP/USD: Daily chart

Trend: Limited downside expected

Additional important levels

Overview
Today last price	1.2242
Today Daily Change	-0.0001
Today Daily Change %	-0.01%
Today daily open	1.2243

Trends
Daily SMA20	1.184
Daily SMA50	1.1475
Daily SMA100	1.1651
Daily SMA200	1.2155

Levels
Previous Daily High	1.2311
Previous Daily Low	1.2046
Previous Weekly High	1.2154
Previous Weekly Low	1.1779
Previous Monthly High	1.2154
Previous Monthly Low	1.1147
Daily Fibonacci 38.2%	1.221
Daily Fibonacci 61.8%	1.2147
Daily Pivot Point S1	1.2089
Daily Pivot Point S2	1.1935
Daily Pivot Point S3	1.1824
Daily Pivot Point R1	1.2354
Daily Pivot Point R2	1.2465
Daily Pivot Point R3	1.2619

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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