GBP/USD Price Analysis: Scales 61.8% Fib hurdle of September drop
- GBP/USD ended last week above the key Fibonacci hurdle.
- The bulls now need to beat the last week's high of 1.3313.
GBP/USD is currently trading at 1.3217, representing a 0.20% gain on the day, having ended last week above 1.2174 – the 61.8% Fibonacci retracement of the sell-off from the Aug. 31 high of 1.3483 to Sept. 23 low of 1.2675.
The break above the Fibonacci hurdle is usually considered bullish. In this case, however, the last week's high of 1.3313 is the level to beat for the bulls. A move above 1.3313 would invalidate buyer fatigue signaled by the long upper wick attached to the previous week's candle and open the doors for 1.3483.
Alternatively, a move below the Asian session low of 1.3174 would validate the buyer fatigue signaled by the weekly candle and shift risk in favor of a drop to 1.3108 (5-week simple moving average).
Weekly chart
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Trend: Bullish above 1.3313
Technical levels
Author
Omkar Godbole
FXStreet Contributor
Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.
