GBP/USD technical analysis: 1.2705/15 becomes the tough nut to crack for buyers

GBP/USD steps back from the key resistance-confluence.
50% Fibonacci retracement can entertain short-term sellers while 100-day SMA could question bears afterward.

Anil Panchal FXStreet

Failure to cross the key resistance confluence presently drags the GBP/USD pair downwards to 1.2600 while heading into the London open on Monday.

The pair now aims for 50% Fibonacci retracement of May-September declines, at 1.2568, during further declines. However, 100-day Simple Moving Average (SMA), near 1.2410 now, can limit the pair’s additional south-run.

Also supporting the sellers is overbought conditions of 14-bar Relative Strength Index (RSI).

Should bears refrain from respecting 1.2410 rest-point, early-month low nearing 1.2195 will flash on their radar.

Alternatively, 61.8% Fibonacci retracement, 200-day SMA and a falling trend-line since May 21 limit the pair’s upside around 1.2705/15, a break of which could escalate the run-up to June month high surrounding 1.2785.

During the pair’s extended rise past-1.2785, 1.2815 and 1.2865 will becomes bulls’ favorites.

GBP/USD daily chart

Trend: pullback expected

additional important levels

Overview
Today last price	1.2606
Today Daily Change	-42 pips
Today Daily Change %	-0.33%
Today daily open	1.2648

Trends
Daily SMA20	1.2382
Daily SMA50	1.2272
Daily SMA100	1.2413
Daily SMA200	1.2715

Levels
Previous Daily High	1.2707
Previous Daily Low	1.2408
Previous Weekly High	1.2707
Previous Weekly Low	1.2194
Previous Monthly High	1.2583
Previous Monthly Low	1.1958
Daily Fibonacci 38.2%	1.2593
Daily Fibonacci 61.8%	1.2522
Daily Pivot Point S1	1.2468
Daily Pivot Point S2	1.2288
Daily Pivot Point S3	1.2168
Daily Pivot Point R1	1.2768
Daily Pivot Point R2	1.2887
Daily Pivot Point R3	1.3067

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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