- GBP/USD pauses on the way to fresh yearly low.
- 200-week SMA, 38.2% Fibonacci retracement offers strong support.
- October’s bottom guards immediate upside, half-yearly resistance line is the key.
GBP/USD holds lower grounds near 1.3280, retreating towards the yearly low during Thursday’s Asian session. Although the cable pair grinds above the 2021 bottom marked on Tuesday, descending RSI line and sustained trading below the short-term key support, now resistance, keeps bears hopeful.
That said, a convergence of the 38.2% Fibonacci retracement (Fibo.) of March 2020 to June 2021 upside and 200-week SMA surrounding 1.3155 lures the sellers should they manage to conquer the latest yearly low of 1.3194.
It should be noted, however, that the RSI line inches closer to the oversold territory and hence can stop the GBP/USD bears around the stated strong support of 1.3155, failing to which can direct the quote towards the 1.3000 psychological magnet.
Meanwhile, an upside break of the October’s low surrounding 1.3410 becomes necessary for even short-term buyers to take the risk. Following that, 23.6% Fibo. level of 1.3580 may lure the bulls.
However, GBP/USD advances past 1.3588 will be considered elusive until the quote stays below a six-month-old descending resistance line, around 1.3720 by the press time.
GBP/USD: Weekly chart
Trend: Further weakness expected
Additional important levels
|Today last price||1.3278|
|Today Daily Change||-0.0023|
|Today Daily Change %||-0.17%|
|Today daily open||1.3301|
|Previous Daily High||1.3371|
|Previous Daily Low||1.3194|
|Previous Weekly High||1.3457|
|Previous Weekly Low||1.3278|
|Previous Monthly High||1.3698|
|Previous Monthly Low||1.3194|
|Daily Fibonacci 38.2%||1.3262|
|Daily Fibonacci 61.8%||1.3303|
|Daily Pivot Point S1||1.3207|
|Daily Pivot Point S2||1.3113|
|Daily Pivot Point S3||1.3031|
|Daily Pivot Point R1||1.3383|
|Daily Pivot Point R2||1.3465|
|Daily Pivot Point R3||1.3559|
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.