GBP/USD Price Analysis: Sellers attack short-term key support above 1.2500

GBP/USD extends the previous day’s pullback from three-week high.
An eight-day-old rising support line probes intraday sellers.
Bearish MACD signals, U-turn below 200-EMA hints at the further downside.

Anil Panchal FXStreet

GBP/USD takes offers to refresh intraday low around 1.2520, extending the U-turn from the 200-EMA towards breaking a one-week-old support line during Wednesday’s Asian session.

Given the cable pair’s inability to cross the 200-EMA, coupled with the bearish MACD signals, the quote is likely to break the immediate support near 1.2520.

The same can direct GBP/USD prices towards one-month-old horizontal support around 1.2420-15.

However, any further downside past 1.2415, will not hesitate to challenge 1.2260 and the monthly low surrounding 1.2155.

Alternatively, the 200-EMA level of 1.2606 restricts the GBP/USD pair’s immediate upside ahead of the monthly peak of 1.2638.

Should the pair buyers manage to cross the 1.2638 hurdle, a convergence of a downward sloping trend line from mid-April and 61.8% Fibonacci retracement (Fibo.) of April-May declines, around 1.2770, will be in the spotlight.

GBP/USD: Four-hour chart

Trend: Further weakness expected

Additional important levels

Overview
Today last price	1.2522
Today Daily Change	-0.0010
Today Daily Change %	-0.08%
Today daily open	1.2532

Trends
Daily SMA20	1.2425
Daily SMA50	1.2809
Daily SMA100	1.3137
Daily SMA200	1.3349

Levels
Previous Daily High	1.2599
Previous Daily Low	1.2472
Previous Weekly High	1.2525
Previous Weekly Low	1.2217
Previous Monthly High	1.3167
Previous Monthly Low	1.2411
Daily Fibonacci 38.2%	1.252
Daily Fibonacci 61.8%	1.255
Daily Pivot Point S1	1.247
Daily Pivot Point S2	1.2407
Daily Pivot Point S3	1.2343
Daily Pivot Point R1	1.2597
Daily Pivot Point R2	1.2661
Daily Pivot Point R3	1.2723

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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