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.

GBP/USD retreats from multi-day highs around 1.3550

GBP/USD now gives away part of the earlier advance toward the 1.3550 region, or multi-week peaks, looking to consolidate around the 1.3530 region on Wednesday. Cable’s continuation of its march north follows the modest downside pressure on the Greenback after US CPI readings matched consensus in July.

EUR/USD eases from tops, back to 1.1550

EUR/USD now surrenders some gains and recedes toward the 1.1550 regio on Wednesday. Despite the knee-jerk, spot keeps the bid tone intact amid the offered stance in the US Dollar, all in the wake of in-line US inflation data in July. However, the fragile landscape in the Middle East is expected to put a floor to the occasional downward trend in the buck.

Gold challenges 10-week highs near $4,450

Gold now pushes harder and climbs to new two-month highs near $4,450 per troy ounce on Wednesday. The yellow metal’s solid performance comes on the back of a weaker US Dollar and declining US Treasuty yields across the curve as investors assess the latest US CPI data.

Ripple lags recovery as exchange reserves expand

Ripple is trading within a broadly constrained technical structure, with support at $1.00 and key moving averages limiting its recovery potential. In August, the remittance token declined by approximately 6.5%, extending its total pullback to around 14% from July's $1.18 peak.

911 million shares freed: Why SpaceX rallied into its own supply

The most heavily trailed supply event of the year landed on August 6, and the SpaceX (SPCX) stock went up. Roughly 911.5 million shares held by insiders and early backers became eligible to trade, around 43% more than the entire float sold at the listing.

9-3: Is the Federal Reserve’s vote tally Warsh's new forward guidance?

The rate did not move. Neither did the statement, and that’s the more interesting fact. Set the July 29 Federal Open Market Committee (FOMC) statement beside the one issued on June 17, and the two documents are identical apart from a single verb and a paragraph at the bottom naming three dissenters.