GBP/USD Price Analysis: Trims a part of intraday gains, bulls await ascending channel breakout

  • GBP/USD once again stalled the intraday positive move near ascending channel resistance.
  • The set-up favours bullish traders and supports prospects for the emergence of dip-buying.
  • A sustained break below the 1.3200 mark is needed to negate the near-term bullish outlook.

The GBP/USD pair trimmed a part of its intraday gains to the 1.3380 region and once again witnessed a modest pullback from the top end of a two-month-old ascending trend-channel. The pair's inability to break through the channel resistance warrants some caution for bullish traders.

However, the fact that the GBP/USD pair has managed to hold above the 1.3310-1.3300 resistance breakpoint, the near-term bias seems tilted in favour of bullish traders. Hence, a pullback towards the mentioned resistance-turned-support might still be seen as a buying opportunity.

Meanwhile, technical indicators on the daily chart maintained their bullish bias and further support prospects for the emergence of some dip-buying at lower levels. That said, some follow-through weakness below the 1.3300 mark might prompt some technical selling.

The GBP/USD pair might then accelerate the retracement slide towards the 1.3265-60 horizontal support before eventually dropping to test the 1.3200 round-figure mark. Failure to defend the mentioned support levels will negate the near-term constructive outlook.

On the flip side, bulls might now wait for a sustained strength beyond the 1.3400 mark to confirm a trend-channel breakout. The momentum could then push the GBP/USD pair back towards September monthly swing highs, around the 1.3480 region, en-route the key 1.3500 psychological mark.

GBP/USD daily chart


Technical levels to watch


Today last price 1.3338
Today Daily Change 0.0020
Today Daily Change % 0.15
Today daily open 1.3318
Daily SMA20 1.3133
Daily SMA50 1.3008
Daily SMA100 1.299
Daily SMA200 1.2721
Previous Daily High 1.3398
Previous Daily Low 1.3264
Previous Weekly High 1.3312
Previous Weekly Low 1.3166
Previous Monthly High 1.3177
Previous Monthly Low 1.282
Daily Fibonacci 38.2% 1.3347
Daily Fibonacci 61.8% 1.3315
Daily Pivot Point S1 1.3255
Daily Pivot Point S2 1.3193
Daily Pivot Point S3 1.3122
Daily Pivot Point R1 1.3389
Daily Pivot Point R2 1.346
Daily Pivot Point R3 1.3522


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