GBP/USD Price Analysis: Snaps two-day uptrend as 200-day EMA probes buyers

GBP/USD fades bounce off the five-week-old support line, mildly offered of late.
Bearish MACD signals suggest another attempt to break short-term support.
Monthly horizontal resistance, December’s peak adds to the upside barriers.

Anil Panchal FXStreet

GBP/USD renews its intraday low near 1.2070 during the first loss-making day in three, despite the market’s inaction during early Monday.

In doing so, the Cable pair takes a U-turn from the 200-day Exponential Moving Average (EMA) to recall the bears. Also keeping the GBP/USD sellers hopeful are the bearish MACD signals,

It’s worth noting, however, that a one-month-old ascending support line, close to 1.2020 by the press time, restricts short-term GBP/USD downside.

Following that, the late November swing low near 1.1900 could act as the last defense of the GBP/USD.

In a case where GBP/USD remains bearish past 1.1900, the odds of witnessing a slump towards the 38.2% Fibonacci retracement level of September-December 2022 upside, near 1.1650, can’t be ruled out.

Alternatively, a clear upside break of the 200-day EMA level surrounding 1.2115 could propel GBP/USD towards a one-month-long resistance line, close to 1.2355 at the latest.

Should the GBP/USD bulls occupy the driver’s seat past 1.2355, the previous monthly peak surrounding 1.2450 should gain the market’s attention.

Overall, GBP/USD is likely to witness a downside but the room towards the south appears limited.

GBP/USD: Daily chart

Trend: Limited downside expected

Additional important levels

Overview
Today last price	1.2069
Today Daily Change	-0.0021
Today Daily Change %	-0.17%
Today daily open	1.209

Trends
Daily SMA20	1.2158
Daily SMA50	1.1906
Daily SMA100	1.1667
Daily SMA200	1.2046

Levels
Previous Daily High	1.2108
Previous Daily Low	1.201
Previous Weekly High	1.2126
Previous Weekly Low	1.2002
Previous Monthly High	1.2447
Previous Monthly Low	1.1992
Daily Fibonacci 38.2%	1.207
Daily Fibonacci 61.8%	1.2047
Daily Pivot Point S1	1.203
Daily Pivot Point S2	1.1971
Daily Pivot Point S3	1.1933
Daily Pivot Point R1	1.2128
Daily Pivot Point R2	1.2167
Daily Pivot Point R3	1.2226

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.

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