GBP/USD Price Analysis: Retreats over 250 pips from daily tops, back closer to 1.1700 mark

GBP/USD failed to capitalize on its early positive move to over one-week tops.
The sharp intraday fall tests a descending trend-line resistance-turned-support.

Haresh Menghani FXStreet

The GBP/USD pair witnessed a dramatic intraday turnaround and has now retreated nearly 250 pips from over one-week tops, set earlier this Wednesday. The pair has now dropped back to a one-week-old descending trend-line resistance break-point, which is closely followed by 100-hour SMA.

Meanwhile, technical indicators on hourly charts have again started drifting into the negative territory. This comes on the back of already bearish oscillators on the daily chart, which points to the emergence of some fresh selling pressure and supports prospects for the resumption of the prior bearish trend.

Some follow-through weakness below the 1.1700 round-figure mark will reinforce the negative outlook and accelerate the fall further towards testing the next support near mid-1.1600s. The downward trajectory could further get extended and turn the pair vulnerable to break below the 1.1600 round-figure mark.

On the flip side, the 1.1800 mark now seems to act as immediate support, above which the pair might head towards testing the 1.1860-65 supply zone. Any subsequent strength might negate any bearish bias and prompt some aggressive short-covering move, lifting the pair back beyond the 1.1900 mark.

GBP/USD 1-hourly chart

Technical levels to watch

GBP/USD

Overview
Today last price	1.1718
Today Daily Change	-0.0041
Today Daily Change %	-0.35
Today daily open	1.1759

Trends
Daily SMA20	1.2456
Daily SMA50	1.2789
Daily SMA100	1.2905
Daily SMA200	1.2677

Levels
Previous Daily High	1.18
Previous Daily Low	1.1501
Previous Weekly High	1.24
Previous Weekly Low	1.1412
Previous Monthly High	1.3204
Previous Monthly Low	1.2726
Daily Fibonacci 38.2%	1.1685
Daily Fibonacci 61.8%	1.1615
Daily Pivot Point S1	1.1573
Daily Pivot Point S2	1.1388
Daily Pivot Point S3	1.1275
Daily Pivot Point R1	1.1872
Daily Pivot Point R2	1.1985
Daily Pivot Point R3	1.217

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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