GBP/USD Price Analysis: Slides towards 1.2300 on trend line break

GBP/USD bears are back in town after three-week uptrend as Cable news intraday low.
Another failure to cross 1.2445-50 resistance zone, downside break of 13-day-old ascending support line lures sellers.
Convergence of 50-DMA, 100-DMA appears the key support for bears to watch.
Oscillators also suggest that buyers are running out of steam.

Anil Panchal FXStreet

GBP/USD begins the week’s trading on a back foot after witnessing three consecutive weekly gains in the last, down 0.25% around 1.2310 by the press time.

In doing so, the Cable pair justifies the downside break of a two-week-old ascending support line, now resistance around 1.2365. Adding strength to the quote’s bearish bias is one more reversal from the 1.2445-50 resistance zone which has been restricting the quote’s upside since early December 2022.

Additionally, a looming bear cross on the MACD and a steady RSI (14) line also suggest that the GBP/USD pair could consolidate the latest weekly gains.

However, a convergence of the 50-DMA and 100-DMA, near 1.2140-45, appears a tough nut to crack for the Cable pair bears.

Following that, an upward-sloping support line from November, close to 1.1940 by the press time, can challenge the GBP/USD pair sellers.

Meanwhile, recovery moves not only need validation from the support-turned-resistance line of around 1.2365 but also need to provide a successful upside break of the 1.2445-50 area to convince the GBP/USD buyers.

Should the Cable pair manage to remain firmer past 1.2450, a run-up toward the May 2022 high of around 1.2665 can’t be ruled out.

GBP/USD: Daily chart

Trend: Further downside expected

Additional important levels

Overview
Today last price	1.2311
Today Daily Change	-0.0027
Today Daily Change %	-0.22%
Today daily open	1.2338

Trends
Daily SMA20	1.2163
Daily SMA50	1.2149
Daily SMA100	1.213
Daily SMA200	1.1895

Levels
Previous Daily High	1.2424
Previous Daily Low	1.2324
Previous Weekly High	1.2424
Previous Weekly Low	1.2219
Previous Monthly High	1.2424
Previous Monthly Low	1.1803
Daily Fibonacci 38.2%	1.2362
Daily Fibonacci 61.8%	1.2386
Daily Pivot Point S1	1.23
Daily Pivot Point S2	1.2262
Daily Pivot Point S3	1.2201
Daily Pivot Point R1	1.2399
Daily Pivot Point R2	1.2461
Daily Pivot Point R3	1.2499

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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