• GBP/USD faces a stiff hurdle around 1.3290 on the road to recovery.
  • The US dollar retreat keeps the downside cushioned amid the upbeat mood.
  • Symmetrical triangle breakout needs confirmation on the four-hour chart.

GBP/USD is advancing towards 1.3300 so far this Tuesday, finding support from a renewed downside in the US dollar across the board amid an improving market mood.

Easing fears over the new Omicron covid variant, as its effects are seen as mild, keep the overall market sentiment buoyed.

Although the further upside appears uncertain amid cautious remarks from the Bank of England (BOE) policymakers, as they contemplate their rate hike plans amid the emergence of the new covid strain.

Also, capping the upside technically is the powerful resistance near the 1.3290-1.3295 price zone. The bearish 50-Simple Moving Average (SMA) aligns at that level.

A four-hourly candlestick closing above that level, GBP/USD will validate a symmetrical triangle breakout.  

The 14-day Relative Strength Index (RSI) points higher above the midline, allowing room for more gains.

Buyers will then look to extend the rebound towards the 100-SMA at 1.3360.

GBP/USD: Daily chart

Alternatively, a failure to find acceptance above the aforesaid critical resistance, sellers will return to test the 21-SMA at 1.3269.

The next downside target for GBP bears is then seen at the 1.3250 psychological level. Further south, the triangle support at 1.3232 could be put to test.

GBP/USD: Additional levels to consider

GBP/USD

Overview
Today last price 1.3286
Today Daily Change 0.0031
Today Daily Change % 0.23
Today daily open 1.3256
 
Trends
Daily SMA20 1.3373
Daily SMA50 1.3539
Daily SMA100 1.3664
Daily SMA200 1.3798
 
Levels
Previous Daily High 1.3287
Previous Daily Low 1.322
Previous Weekly High 1.3371
Previous Weekly Low 1.3194
Previous Monthly High 1.3698
Previous Monthly Low 1.3194
Daily Fibonacci 38.2% 1.3261
Daily Fibonacci 61.8% 1.3246
Daily Pivot Point S1 1.3222
Daily Pivot Point S2 1.3188
Daily Pivot Point S3 1.3156
Daily Pivot Point R1 1.3288
Daily Pivot Point R2 1.332
Daily Pivot Point R3 1.3354

 

 

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