GBP/USD Price Analysis: Turns vulnerable below a short-term ascending trend-line support

GBP/USD remained under some selling pressure for the second straight session on Monday.
Repeated failures near the 1.3700 level constituted the formation of a bearish multiple-tops.
A subsequent fall below an ascending trend-line might have set the stage for a further decline.

Haresh Menghani FXStreet

The GBP/USD pair witnessed some follow-through selling for the second consecutive session on Monday and retreated further from multi-year tops, around the 1.3700-1.3710 region set last week. Repeated failures near the mentioned supply zone constituted the formation of a bearish multiple-top pattern on short-term charts.

Meanwhile, the retracement slide extended through the mid-European session and dragged the GBP/USD pair to multi-day lows, around the 1.3520 region. This marks a bearish break below a near one-month-old ascending trend-line support and might have already set the stage for a further near-term depreciating move.

The bearish outlook is further reinforced by the fact that technical indicators have been gaining negative traction on hourly charts. That said, oscillators on the daily chart – though have been losing positive momentum – are yet to confirm the bearish bias and thus, warrant some caution for aggressive traders.

Hence, it will be prudent to wait for some follow-through selling below the 38.2% Fibonacci level of the 1.3188-1.3710 positive move before placing fresh bearish bets. A subsequent fall below the key 1.3500 psychological mark will reaffirm the negative set-up and drag the GBP/USD pair to 50% Fibo. level, around mid-1.3400s.

On the flip side, any meaningful recovery back above the mentioned trend-line support breakpoint might now be seen as a selling opportunity. This, in turn, should cap the upside for the GBP/USD pair near the 23.6% Fibo. level, or levels just ahead of the 1.3600 mark. However, a sustained strength beyond will negate the negative outlook.

GBP/USD 4-hourly chart

Technical levels to watch

GBP/USD

Overview
Today last price	1.3544
Today Daily Change	-0.0040
Today Daily Change %	-0.29
Today daily open	1.3584

Trends
Daily SMA20	1.3567
Daily SMA50	1.3426
Daily SMA100	1.3204
Daily SMA200	1.2914

Levels
Previous Daily High	1.3698
Previous Daily Low	1.3572
Previous Weekly High	1.371
Previous Weekly Low	1.3451
Previous Monthly High	1.3686
Previous Monthly Low	1.3134
Daily Fibonacci 38.2%	1.3621
Daily Fibonacci 61.8%	1.365
Daily Pivot Point S1	1.3538
Daily Pivot Point S2	1.3492
Daily Pivot Point S3	1.3412
Daily Pivot Point R1	1.3664
Daily Pivot Point R2	1.3744
Daily Pivot Point R3	1.379

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

EUR/USD remains offered below 1.1800, looks at US data

EUR/USD is still trading on the defensive in the latter part of Thursday’s session, while the US Dollar maintains its bid bias as investors now gear up for Friday’s key release of the PCE data, advanced Q4 GDP prints and flash PMIs.

GBP/USD bounces off monthly lows near 1.3430

GBP/USD is sliding in tandem with its risk-sensitive peers, drifting back towards the 1.3430 area, its lowest levels in the month. The move reflects a firmer Greenback, supported by another round of solid US data and a somewhat divided FOMC Minutes.

Gold drifts higher to near $5,000 on heightened US-Iran tensions

Gold price holds positive ground near $5,000 during the early Asian session on Friday. The precious metal edges higher as escalating tensions between the United States and Iran boost safe-haven demand. Traders brace for the preliminary reading of US Gross Domestic Product for the fourth quarter, the Personal Consumption Expenditures and the S&P Global Purchasing Managers Index data, which are due later on Friday.

Ethereum: Active addresses halt growth as US selling pressure eases

Ethereum network growth has declined after two months of explosive increase. US selling pressure has eased following an improvement in the Coinbase Premium Index. ETH extends its range-bound move below the $2,107 resistance and above $1,740 .

Hawkish Fed minutes and a market finding its footing

It was green across the board for US Stock market indexes at the close on Wednesday, with most S&P 500 names ending higher, adding 38 points (0.6%) to 6,881 overall. At the GICS sector level, energy led gains, followed by technology and consumer discretionary, while utilities and real estate posted the largest losses.

Injective token surges over 13% following the approval of the mainnet upgrade proposal

Injective price rallies over 13% on Thursday after the network confirmed the approval of its IIP-619 proposal. The green light for the mainnet upgrade has boosted traders’ sentiment, as the upgrade aims to scale Injective’s real-time Ethereum Virtual Machine architecture and enhance its capabilities to support next-generation payments.