GBP/USD Price Analysis: The next downside target is seen at 1.2540


  • GBP/USD trades on a stronger note near 1.2580 on the weaker USD. 
  • The pair keeps the bearish vibe below the key EMA; RSI indicator holds in bearish territory. 
  • The immediate resistance level will emerge at 1.2617; 1.2540 acts as an initial support level. 

The GBP/USD pair recovers some lost ground and currently trades around 1.2580 on Wednesday during the early European session. The decline of the USD Index (DXY) and the dismal market mood in the UK economy act as a tailwind for the major pair. Later on Wednesday, the ADP Employment Change and the ISM Services PMI will be due. Also, Federal Reserve (Fed) Chair Jerome Powell's speech will be a closely watched event. 

Technically, the bearish outlook of GBP/USD remains intact as the major pair is below the key 50-period and 100-period Exponential Moving Average (EMA) on the four-hour chart with a downward slope. Furthermore, the downward momentum is confirmed by the Relative Strength Index (RSI), which hovers around 44.5 in bearish territory, supporting the sellers for the time being. 

The immediate resistance level for GBP/USD will emerge near the 50-period EMA at 1.2617. The next hurdle is seen near the 1.2650–1.2660 region, portraying the 100-period EMA and the upper boundary of the Bollinger Band. A break above the latter will pave the way to the 1.2700 psychological level. Further north, the next upside target is located at a high of March 18 at 1.2746. 

On the downside, a low of April 1 at 1.2540 acts as an initial support level for the major pair. The additional downside filter to watch is a low of April 1 at 1.2540. A breach of the lower limit of the Bollinger Band at 1.2525 will expose a low of December 8 and the round mark of 1.2500. 

GBP/USD four-hour chart

GBP/USD

Overview
Today last price 1.2579
Today Daily Change 0.0001
Today Daily Change % 0.01
Today daily open 1.2578
 
Trends
Daily SMA20 1.2704
Daily SMA50 1.2671
Daily SMA100 1.266
Daily SMA200 1.2588
 
Levels
Previous Daily High 1.2579
Previous Daily Low 1.2539
Previous Weekly High 1.2668
Previous Weekly Low 1.2586
Previous Monthly High 1.2894
Previous Monthly Low 1.2575
Daily Fibonacci 38.2% 1.2564
Daily Fibonacci 61.8% 1.2555
Daily Pivot Point S1 1.2552
Daily Pivot Point S2 1.2526
Daily Pivot Point S3 1.2512
Daily Pivot Point R1 1.2591
Daily Pivot Point R2 1.2605
Daily Pivot Point R3 1.2631

 

 

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