GBP/USD Price Analysis: Under pressure between 21-day SMA and 50% Fibonacci

GBP/USD remains below 50% Fibonacci retracement for two weeks in a row.
An ascending trend line since early-November acts as strong support.
An upside break beyond Wednesday’s high could challenge the monthly top.

Anil Panchal FXStreet

GBP/USD remains mildly negative while trading near 1.3120 during the Asian session on Friday. The pair took a U-turn from 50% Fibonacci retracement of its November-December 2019 upside on the previous day. Even so, prices carry the 21-day SMA breakout registered on Wednesday.

Hence, a daily closing beyond the 45-pip range between 1.3145 and 1.3100, including 50% Fibonacci retracement and 21-day SMA respectively, becomes necessary for the pair to register increased volatility.

61.8% Fibonacci retracement at 1.3054 and an upward sloping trend line stretched since early November at 1.3000 now, can question the sellers during the pair’s downside below 1.3100.

Should there be increased selling under 1.3000 mark, December monthly low near 1.2900 will lure the bears.

Alternatively, the monthly high surrounding 1.3285 will be the buyers’ choice if prices manage to cross 1.3145. Further, 23.6% Fibonacci retracement and December month top, near 1.3340 and 1.3515, will be in focus during the pair’s rise after 1.3285.

GBP/USD daily chart

Trend: Sideways

Additional important levels

Overview
Today last price	1.3119
Today Daily Change	-1 pip
Today Daily Change %	-0.01%
Today daily open	1.312

Trends
Daily SMA20	1.3092
Daily SMA50	1.3053
Daily SMA100	1.2831
Daily SMA200	1.2691

Levels
Previous Daily High	1.3152
Previous Daily Low	1.3097
Previous Weekly High	1.312
Previous Weekly Low	1.2954
Previous Monthly High	1.3515
Previous Monthly Low	1.2896
Daily Fibonacci 38.2%	1.3118
Daily Fibonacci 61.8%	1.3131
Daily Pivot Point S1	1.3094
Daily Pivot Point S2	1.3068
Daily Pivot Point S3	1.3039
Daily Pivot Point R1	1.3149
Daily Pivot Point R2	1.3178
Daily Pivot Point R3	1.3204

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

EUR/USD holds ground near 1.1550 ahead of US Inflation data

EUR/USD is holding ground at around 1.1550 in the European session on Wednesday. The pair takes advantage of the profit-taking pullback in the US Dollar as traders reposition ahead of the critical US CPI inflation data. However, any upside attempts could be limited amid renewed US-Iran tensions.

GBP/USD keeps range near 1.3400, with eyes on US CPI

GBP/USD clings to minor recovery gains near 1.3400 in Wednesday's European trading, though it remains in a familiar range heading into the US CPI event risk. Traders keep an eye on developments around the Middle East crisis, which could ramp up volatility in the major.

Gold languishes near March low, below $4,200 as traders await US CPI report

Gold maintains its heavily offered tone through the first half of the European session and currently trades near its lowest level since March 23, around the $4,180-$4,175 region. Renewed hostilities between the US and Iran fuel inflationary concerns and bolster bets for more hawkish central banks.

Cardano's downtrend deepens despite on-chain bottoming signals

Cardano edges lower to $0.1600 signaling a potential extension of the 30% loss from last week. The altcoin remains under intense selling pressure, weighing on its retail support. Still, a spike in dormant supply re-entering circulation signals that the selling pressure has run its course, a pattern that often precedes a rebound.

US CPI data set to show inflation at three-year high in May, backing Fed hawkish tilt

The US Bureau of Labor Statistics will publish the May Consumer Price Index (CPI) data on Wednesday. The report is expected to show another step up in consumer inflation, driven by the persistently high Oil prices due to the ongoing crisis in the Middle East.

The US economy defies the rules: 100 days into the Oil shock and the recession signal is still missing

More than three months after the start of the Iran war and the resulting disruption to global energy markets, the US economy continues to display remarkable resilience. The conflict has triggered a sharp rise in Oil prices, reignited inflationary pressures and fueled widespread concerns about a potential economic slowdown.