GBP/USD technical analysis: 21-DMA limits immediate declines

Declines following Doji drags the GBP/USD pair to 21-DMA.
Upside capped by 61.8% Fibonacci retracement, June 18 top may question sellers during the plunge.

Anil Panchal FXStreet

GBP/USD portrays the aftermath of declines based on Monday's Doji candle while taking the rounds to 1.2670, near 21-DMA, while heading into the UK open on Wednesday.

Should sellers refrain from respecting the near-term moving average (MA), June 18 high near 1.2566 may act as an intermediate halt during the plunge towards the month’s bottom around 1.2506.

While 14-day relative strength index (RSI) is more likely to limit the pair’s declines past-1.2506, failure to do so highlights December 2018 low of 1.2480 and the year-to-date trough close to 1.2438 may lure the bears.

On the contrary, 61.8% Fibonacci Retracement of January to March 2019 upside, at 1.2800, is likely a strong resistance for buyers to conquer in order to aim for April month low near 1.2865.

If bulls dominate past-1.2865, 50% Fibonacci retracement near 1.2909 and 200-day moving average (DMA) at 1.2923 could flash on their radars.

GBP/USD daily chart

Trend: Pullback expecte

Additional important levels

Overview
Today last price	1.2668
Today Daily Change	-24 pips
Today Daily Change %	-0.19%
Today daily open	1.2692

Trends
Daily SMA20	1.2667
Daily SMA50	1.2808
Daily SMA100	1.2952
Daily SMA200	1.2925

Levels
Previous Daily High	1.2784
Previous Daily Low	1.2671
Previous Weekly High	1.275
Previous Weekly Low	1.2506
Previous Monthly High	1.3178
Previous Monthly Low	1.2559
Daily Fibonacci 38.2%	1.2714
Daily Fibonacci 61.8%	1.2741
Daily Pivot Point S1	1.2647
Daily Pivot Point S2	1.2602
Daily Pivot Point S3	1.2533
Daily Pivot Point R1	1.276
Daily Pivot Point R2	1.2829
Daily Pivot Point R3	1.2874

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: US Dollar to remain pressured until uncertainty fog dissipates

Unimpressive European Central Bank left monetary policy unchanged for the fifth consecutive meeting. The United States first-tier employment and inflation data is scheduled for the second week of February. EUR/USD battles to remain afloat above 1.1800, sellers moving to the sidelines.

GBP/USD softens to near 1.3600 as BoE hints further rate cuts

The GBP/USD pair loses ground to near 1.3610 during the early Asian session on Monday. The Pound Sterling softens against the Greenback amid growing expectations of the Bank of England’s interest-rate cut. Traders will take more cues from the Fedspeak later on Monday.

Gold eyes acceptance above $5,000, kicking off a big week

Gold is consolidating the latest uptick at around the $5,000 mark, with buyers gathering pace for a sustained uptrend as a critical week kicks off. All eyes remain on the delayed Nonfarm Payrolls and Consumer Price Index data from the United States due on Wednesday and Friday, respectively.

Top Crypto Gainers: Aster, Decred, and Kaspa rise as selling pressure wanes

Altcoins such as Aster, Decred, and Kaspa are leading the broader cryptocurrency market recovery over the last 24 hours, as Bitcoin holds above $70,000 on Monday, up from the $60,000 dip on Thursday.

Weekly column: Saturn-Neptune and the end of the Dollar’s 15-year bull cycle

Tariffs are not only inflationary for a nation but also risk undermining the trust and credibility that go hand in hand with the responsibility of being the leading nation in the free world and controlling the world’s reserve currency.

Bitcoin, Ethereum and Ripple consolidate after massive sell-off

Bitcoin, Ethereum, and Ripple prices consolidated on Monday after correcting by nearly 9%, 8%, and 10% in the previous week, respectively. BTC is hovering around $70,000, while ETH and XRP are facing rejection at key levels. Traders should be cautious: despite recent stabilization, upside recovery for these top three cryptocurrencies is capped as the broader trend remains bearish.