- GBP/USD remains under 21-day EMA, 38.2% Fibonacci retracement.
- A confluence of 200-day EMA, 50% Fibonacci retracement will be the key.
GBP/USD clings to 1.3000 during Thursday’s Asian session. The pair failed to extend its recovery beyond 21-day EMA the previous day, not to forget its current stand under 38.2% Fibonacci retracement of October-December upside.
With this, the quote is likely to remain under pressure towards a 100-day EMA level of 1.2925. However, pair’s further declines could challenge a support confluence around 1.2850 that includes 200-day EMA and 50% Fibonacci retracement.
In a case where the bears dominate below 1.2850, November 2019 low near 1.2770 will be on their radars.
On the upside break of the 21-day EMA level of 1.3055, short-term buyers could target 23.6% Fibonacci retracement, at 1.3200.
Also, the pair’s sustained rise beyond 1.3200 will take aim at December 31, 2019 top of 1.3285 prior to targeting the December month’s high of 1.3516.
GBP/USD daily chart
Trend: Pullback expected
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD remains on the defensive near 1.0680 on Dollar strength
The solid performance of the Greenback keeps the price action in the risk-associated universe depressed so far on turnaround Tuesday, sending EUR/USD to multi-day lows in the 1.0680 region.
GBP/USD declines toward 1.2500 on renewed USD strength
GBP/USD turned south and dropped toward 1.2500 in the second half of the day. The US Dollar stays resilient against its rivals following the strong wage inflation data and doesn't allow the pair to gain traction.
Gold stable below $2,300 despite mounting fears
Gold stays under selling pressure and confronts the $2,300 region on Tuesday against the backdrop of the resumption of the bullish trend in the Greenback and the decent bounce in US yields prior to the interest rate decision by the Fed on Wednesday.
XRP hovers above $0.51 as Ripple motion to strike new expert materials receives SEC response
Ripple (XRP) trades broadly sideways on Tuesday after closing above $0.51 on Monday as the payment firm’s legal battle against the US Securities and Exchange Commission (SEC) persists.
Eurozone inflation stable as the outlook on prices gets increasingly muddied
Eurozone headline inflation remains stable at 2.4%. With higher energy prices and improving domestic demand, questions about the direction of inflation become louder.