GBP/USD Price Analysis: Spikes to weekly tops, tests 200-hour SMA


  • GBP/USD gains some traction for the third consecutive session on Thursday.
  • The set-up favours bulls, albeit warrants caution amid fears of a no-deal Brexit.

The GBP/USD pair added to its recent recovery move and gained some follow-through traction for the third consecutive session on Thursday. The momentum lifted the pair to fresh weekly tops in the last hour, with bulls now eyeing a move beyond 200-hour SMA.

This is followed by a resistance marked by the top end of over two-week-old descending trend-channel, around the 1.3100 handle. A sustained move beyond the said barrier might be seen as a key trigger for bullish traders and pave the way for a further appreciating move.

Meanwhile, technical indicators on hourly charts have been gaining positive traction and also recovered from the negative territory on the daily chart. The set-up seems tilted in favour of bullish traders, albeit concerns about a no-deal Brexit might continue to cap strong gains.

Hence, it will be prudent to wait for some strong follow-through buying beyond the trend-channel resistance before placing any fresh bullish bets. The pair might then accelerate the move towards the 1.3165-70 supply zone en-route the 1.3200 round-figure mark.

On the flip side, any meaningful pullback below 100-hour SMA, around the 1.3025-20 region, now seems to find decent support near the key 1.30 psychological mark. Below the said support, the pair might slide towards challenging the trend-channel support, currently near the 1.2900 handle.

GBP/USD 1-hourly chart

fxsoriginal

GBP/USD

Overview
Today last price 1.3051
Today Daily Change 0.0020
Today Daily Change % 0.15
Today daily open 1.3031
 
Trends
Daily SMA20 1.3065
Daily SMA50 1.3025
Daily SMA100 1.2778
Daily SMA200 1.2691
 
Levels
Previous Daily High 1.3043
Previous Daily Low 1.2985
Previous Weekly High 1.3213
Previous Weekly Low 1.3013
Previous Monthly High 1.3515
Previous Monthly Low 1.2896
Daily Fibonacci 38.2% 1.3021
Daily Fibonacci 61.8% 1.3007
Daily Pivot Point S1 1.2996
Daily Pivot Point S2 1.2961
Daily Pivot Point S3 1.2938
Daily Pivot Point R1 1.3054
Daily Pivot Point R2 1.3078
Daily Pivot Point R3 1.3112

 

 

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.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD pressured under 1.11 amid virus fears, ahead of the ECB

EUR/USD is trading below 1.11, under pressure as fears of the coronavirus weigh on markets. The ECB is set to leave rates unchanged and provide views about the current economic environment. 

EUR/USD News

GBP/USD consolidates gains above 1.31 after parliament seals Brexit

GBP/USD is trading above 1.31, consolidating its gains. The House of Lords gave its final seal to Brexit. Speculation ahead of the BOE's decision continues after upbeat data diminished chances for an imminent move.

GBP/USD News

Forex Today: Coronavirus fears spread and weigh on markets, Aussie surges, all eyes on the ECB

Chinese authorities have shut down access links to Wuhan, the large provincial capital where the coronavirus originates from. The news, coming ahead of the Chinese Lunar New Year, is weighing on markets. 

Read more

WTI hits 7-week low, potential bull RSI divergence on 1H

WTI oil fell to $55.68 soon before press time, the lowest level since Dec. 3, having declined by 3.73% on Wednesday. The black gold has found acceptance below $56.60, which is the 61.8% Fibonacci retracement (one of the golden ratio) of the rally from $51.03 to $65.62.

Oil News

USD/JPY drops to fresh eight-day lows near 109.50

USD/JPY extends losses and trades close to an eight-day low near 109.50 in a relatively risk-off environment, with the media headlines full of the coronavirus as it spreads internationally. Bears can look to the golden ratio around mid-108s.

USD/JPY News

Forex MAJORS

Cryptocurrencies

Signatures