GBP/USD technical analysis: 3-week-old resistance-line questions 100-DMA breakout


  • GBP/USD stays little changed around two-month high even after clearing 100-DMA for the first time in more than four months.
  • A rising trend-line since August-end, higher RSI seems to challenge buyers.

Successful trading beyond 100-day simple moving average (DMA) fails to lend much strength to the GBP/USD pair as it struggles around 1.2520 during Friday morning.

Pair’s run-up to the highest in two-months, also above 100-DMA for the first time since early-May, fails to clear a three-week-old upward sloping trend-line, close to 1.2580. Also raising challenges to buyers is the nearly overbought conditions of 14-day relative strength index (RSI).

With this, pair’s declines below 100-DMA level of 1.2490 could trigger fresh pullbacks to 1.2385/80 area including July 17 low and early-September high. However, pair’s further declines should stall around August-end tops nearing 1.2310, if not then odds of witnessing a plunge towards sub-1.2200 area can’t be denied.

Alternatively, an upside clearance of 1.2580 resistance-line can propel GBP/USD to 1.2650 and then to 61.8% Fibonacci retracement level of May-September downpour, at 1.2712.

Further, the 200-DMA level of 1.2740 could stop bulls beyond 1.2712.

GBP/USD daily chart

Trend: pullback expected

additional important levels

Overview
Today last price 1.2524
Today Daily Change 52 pips
Today Daily Change % 0.42%
Today daily open 1.2472
 
Trends
Daily SMA20 1.2294
Daily SMA50 1.2278
Daily SMA100 1.2501
Daily SMA200 1.274
 
Levels
Previous Daily High 1.2515
Previous Daily Low 1.2439
Previous Weekly High 1.2508
Previous Weekly Low 1.2234
Previous Monthly High 1.231
Previous Monthly Low 1.2015
Daily Fibonacci 38.2% 1.2468
Daily Fibonacci 61.8% 1.2486
Daily Pivot Point S1 1.2435
Daily Pivot Point S2 1.2399
Daily Pivot Point S3 1.2359
Daily Pivot Point R1 1.2512
Daily Pivot Point R2 1.2552
Daily Pivot Point R3 1.2588

 

 

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