GBP/USD Technical Analysis: 21-day EMA, June month high restrict immediate declines

GBP/USD sellers catch a breath around the monthly low.
Bearish MACD signal further declines.
61.8% Fibonacci retracement, 200-day EMA become the key during further downside.

Anil Panchal FXStreet

Despite declining to the lowest since October 17 on Friday, GBP/USD stops additional south-run around short-term key supports while trading near 1.2793 amid the initial Asian session on Monday.

Read for recent fundaments: Moody’s: UK outlook cut to negative on policy 'paralysis – Cable slips below 1.2800

An area comprising 21-day Exponential Moving Average (EMA) and June month high around 1.2790/85 becomes important for pair sellers while targeting 61.8% Fibonacci retracement of May-September downside, at 1.2710.

While bearish signals from 12-bar Moving Average Convergence and Divergence (MACD) indicate further weakness of the quote, a 200-day EMA level of 1.2664 could challenge sellers past-1.2710.

On the upside, 1.2860 and monthly high close to 1.2980 can entertain short-term buyers ahead of challenging them with 1.3000 round-figure and October top of 1.3013.

Though, May month high near 1.3180 will be on bull’s radar during pair’s sustained rise beyond 1.3013.

GBP/USD daily chart

Trend: pullback expected

additional important levels

Overview
Today last price	1.2791
Today Daily Change	8 pips
Today Daily Change %	0.06%
Today daily open	1.2783

Trends
Daily SMA20	1.2862
Daily SMA50	1.2555
Daily SMA100	1.2453
Daily SMA200	1.2705

Levels
Previous Daily High	1.2826
Previous Daily Low	1.2769
Previous Weekly High	1.2943
Previous Weekly Low	1.2769
Previous Monthly High	1.3013
Previous Monthly Low	1.2194
Daily Fibonacci 38.2%	1.279
Daily Fibonacci 61.8%	1.2804
Daily Pivot Point S1	1.276
Daily Pivot Point S2	1.2736
Daily Pivot Point S3	1.2703
Daily Pivot Point R1	1.2816
Daily Pivot Point R2	1.2849
Daily Pivot Point R3	1.2873

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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