GBP/USD Price Analysis: Retreats from 200-SMA, weekly resistance line, Cable bears eye 1.2425

GBP/USD takes offers to refresh intraday low, fades the previous day’s corrective bounce off three-week low.
Convergence of 200-SMA, one-week-old descending trend line guards Sterling Pound’s immediate upside.
One-month-old rising support line can prod the Cable pair sellers.

Anil Panchal FXStreet

GBP/USD prints three-day downtrend despite positing mild losses around 1.2480 during early Thursday, fading the previous day’s bounce off a three-week low.

In doing so, the Pound Sterling takes a U-turn from the convergence of the 200-SMA and a downward-sloping resistance line from May 10, close to 1.2490 at the latest. Adding strength to the pullback moves are the steady RSI (14) line and sluggish MACD signals.

As a result, the Cable pair appears all set to drop towards the 61.8% Fibonacci retracement level of its April-May upside, near 1.2430. However, a one-month-old ascending support line, close to 1.2425 by the press time, appears a tough nut to crack for the GBP/USD bears afterward.

In a case where the GBP/USD price drops below 1.2425, the odds of witnessing a quick fall toward a five-week-old horizontal support zone near 1.2355-45 can’t be ruled out.

On the flip side, the GBP/USD pair’s recovery needs to provide a successful break of the 1.2490 resistance confluence to convince buyers.

Following that, the tops marked during mid-April and 23.6% Fibonacci retracement, respectively near 1.2545 and 1.2585, may challenge the Cable pair buyers before directing them to the recently marked multi-day peak of 1.2680.

GBP/USD: Four-hour chart

Trend: Limited downside expected

Additional important levels

Overview
Today last price	1.2481
Today Daily Change	-0.0006
Today Daily Change %	-0.05%
Today daily open	1.2487

Trends
Daily SMA20	1.2519
Daily SMA50	1.2393
Daily SMA100	1.2263
Daily SMA200	1.1966

Levels
Previous Daily High	1.251
Previous Daily Low	1.2422
Previous Weekly High	1.268
Previous Weekly Low	1.244
Previous Monthly High	1.2584
Previous Monthly Low	1.2275
Daily Fibonacci 38.2%	1.2456
Daily Fibonacci 61.8%	1.2476
Daily Pivot Point S1	1.2436
Daily Pivot Point S2	1.2384
Daily Pivot Point S3	1.2347
Daily Pivot Point R1	1.2524
Daily Pivot Point R2	1.2562
Daily Pivot Point R3	1.2613

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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