• GBP/USD retreats from 13-day top inside weekly rising wedge.
  • 200-EMA, overbought RSI add strength to the pullback moves.
  • Descending trend line from mid-April acts as extra filter to the north.

GBP/USD consolidates a three-day uptrend around a fortnight top, easing to 1.2565 ahead of Tuesday’s London open.

In doing so, the cable pair carries the previous day’s failure to cross the 200-EMA amid the overbought RSI (14) line.

However, the bears need a clear downside break of the 1.2500 threshold, comprising the support line of a weekly rising wedge bearish chart pattern, to retake control.

Following that, 1.2270 and the monthly low of 1.2155 can entertain traders ahead of the theoretical target surrounding 1.2050.

Meanwhile, recovery moves not only need to cross the 200-EMA level of 1.2610 but also cross the upper line of the stated wedge, near 1.2625, to favor the GBP/USD buyers.

In a case where the cable prices remain firmer past 1.2625, the 61.8% Fibonacci retracement of April-May fall and a five-week-old descending trend line, respectively around 1.2775 and 1.2815, will lure the bulls.

Overall, GBP/USD is likely to stay on the bear’s radar but validation from 1.2500 becomes necessary.

GBP/USD: Four-hour chart

Trend: Further weakness expected

Additional important levels

Overview
Today last price 1.2563
Today Daily Change -0.0025
Today Daily Change % -0.20%
Today daily open 1.2588
 
Trends
Daily SMA20 1.2427
Daily SMA50 1.2819
Daily SMA100 1.3147
Daily SMA200 1.3355
 
Levels
Previous Daily High 1.2601
Previous Daily Low 1.2479
Previous Weekly High 1.2525
Previous Weekly Low 1.2217
Previous Monthly High 1.3167
Previous Monthly Low 1.2411
Daily Fibonacci 38.2% 1.2555
Daily Fibonacci 61.8% 1.2526
Daily Pivot Point S1 1.2511
Daily Pivot Point S2 1.2434
Daily Pivot Point S3 1.2389
Daily Pivot Point R1 1.2633
Daily Pivot Point R2 1.2678
Daily Pivot Point R3 1.2755

 

 

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