GBP/USD technical analysis: About to confirm rising wedge on H1

RSI, MACD indicate GBP/USD buyers’ exhaustion.
A breakdown below support-line will confirm bearish formation.
Seller may look for 100-HMA, 1-week old rising trend-line on fresh downpour.

Anil Panchal FXStreet

Considering the pair’s moves since Thursday, GBP/USD forms a rising wedge technical pattern on the hourly (H1) chart as it trades near 1.2270 while heading into the UK open on Monday.

Not only the price pattern lower highs but 14-bar relative strength index (RSI) and 12-bar moving average convergence and divergence (MACD) also indicate buyers’ exhaustion.

As a result, sellers await entry as soon the quote slips below 1.2260 while targeting 1.2184/83 horizontal-line including 100-hour moving average (HMA) and August 20 high during further declines.

In a case where bears dominate below 1.2183, short-term rising trend-line near 1.2150 may gain market attention.

On the contrary, 1.2295 and formation resistance of 1.2305 could limit the pair’s immediate advances, a break of which might escalate the run-up towards July 17 low close to 1.2380.

GBP/USD hourly chart

Trend: Pullback expected

Additional important levels

Overview
Today last price	1.2268
Today Daily Change	-11 pips
Today Daily Change %	-0.09%
Today daily open	1.2279

Trends
Daily SMA20	1.2141
Daily SMA50	1.2392
Daily SMA100	1.2629
Daily SMA200	1.278

Levels
Previous Daily High	1.2294
Previous Daily Low	1.2194
Previous Weekly High	1.2294
Previous Weekly Low	1.2064
Previous Monthly High	1.2706
Previous Monthly Low	1.2119
Daily Fibonacci 38.2%	1.2256
Daily Fibonacci 61.8%	1.2233
Daily Pivot Point S1	1.2217
Daily Pivot Point S2	1.2156
Daily Pivot Point S3	1.2117
Daily Pivot Point R1	1.2317
Daily Pivot Point R2	1.2356
Daily Pivot Point R3	1.2417

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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