GBP/USD Price Analysis: Sellers attack 1.2260 hurdle on fresh Brexit woes
- GBP/USD extends pullback from one-week high as NIP Bill passes the UK’s House of Commons vote.
- Convergence of 50-SMA, two-week-old ascending trend line restricts immediate downside.
- RSI retreat, pullback from 100-SMA adds strength to the bearish bias.
- 200-SMA adds to the upside filters, sellers can aim for fresh monthly low.
GBP/USD remains pressured around 1.2260 as bears jostle with the short-term key supports following the fresh Brexit news during late Monday, early Tuesday for Asia.
That said, the UK’s House of Commons had enough votes to pass the controversial Northern Ireland Protocol (NIP) even as the European Union (EU) warned of trade wars if the British policymakers progress with the actions.
Read: Northern Ireland Protocol (NIP) Bill passes UK House of Commons vote
Technically, the cable pair keeps the previous day’s pullback from the 100-SMA towards challenging a convergence of the 50-SMA and a fortnight-long support line, near 1.2255 by the press time.
Given the RSI (14) retreats and the failure to cross key SMA, not to forget Brexit news, the GBP/USD prices are likely to break the immediate support.
Following that, the 1.2200 round figure and 23.6% Fibonacci retracement (Fibo.) of May 27 to June 14 downside, near 1.2108, could probe the bears on their way to refresh the monthly low, currently around 1.1935.
Meanwhile, the 100-SMA level near 1.2310 guards the immediate recovery of the GBP/USD pair ahead of the 61.8% Fibonacci retracement level near 1.2390.
In a case where the Cable pair rises past 1.2390, the 200-SMA level of 1.2400 could act as the last defense of the bears.
GBP/USD: Four-hour chart
Trend: Further weakness expected
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.
