GBP/USD technical analysis: Bears set to regain control, sustained break below weekly lows awaited


  • The GBP/USD pair once again failed to make it through the 1.2750-60 supply zone on Wednesday, forming a bearish double-top pattern on the 1-hourly chart.
  • A subsequent break below the 1.2700 handle - coinciding with 200-hour SMA, was seen as a key trigger for bearish traders and a follow-through slide on Thursday.

Despite the pullback, the pair remains well within this week's broader trading range and thus, warrant some caution before positioning for any further depreciating move ahead of the first round of votes for the UK leadership contest.

Meanwhile, technical indicators on the daily chart maintained their bearish bias on the daily chart and have also started gaining negative momentum on the 4-hourly chart, supporting prospects for an eventual bearish breakdown.

However, traders are likely to wait for a convincing break below weekly lows support near the 1.2655-50 region, below which the pair is likely to accelerate the slide further towards challenging the 1.2600 round figure mark.

On the flip side, any attempted recovery might now confront some fresh supply near the 1.2700 handle, though the 1.2745-50 region remains a key pivotal point for bulls and to negate the well-established near-term bearish set-up.

GBP/USD 1-hourly chart

GBP/USD

Overview
Today last price 1.2675
Today Daily Change -0.0015
Today Daily Change % -0.12
Today daily open 1.269
 
Trends
Daily SMA20 1.2688
Daily SMA50 1.2882
Daily SMA100 1.2991
Daily SMA200 1.2943
Levels
Previous Daily High 1.2759
Previous Daily Low 1.2681
Previous Weekly High 1.2763
Previous Weekly Low 1.261
Previous Monthly High 1.3178
Previous Monthly Low 1.2559
Daily Fibonacci 38.2% 1.2711
Daily Fibonacci 61.8% 1.2729
Daily Pivot Point S1 1.2661
Daily Pivot Point S2 1.2632
Daily Pivot Point S3 1.2583
Daily Pivot Point R1 1.2739
Daily Pivot Point R2 1.2788
Daily Pivot Point R3 1.2817

 

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD consolidates losses as Fed moderates message

EUR/USD is trading above 1.1350, consolidating its losses. The Fed's Bullard and Chair Powell have conveyed a balanced message and chancing for a sharp rate cut of 50bp in July have dropped.

EUR/USD News

GBP/USD on the back foot after Johnson's Brexit commitment

GBP/USD is trading below 1.2700, losing some ground. Leading Conservative contender Johnson has rattled markets by saying leaving the EU by October 31st is "do or die." BOE Governor Carney speaks later.

GBP/USD News

USD/JPY: Bulls back in charge, re-takes 107.50

The less dovish rhetoric from a selection of Fed speakers overnight continues to aid the post-FOMC US dollar recovery, prompting the USD/JPY pair to retest the midpoint of the 107 handle despite negative Asian equities. 

USD/JPY News

Gold: 100-HMA triggers the U-turn towards $1421?

Gold is on a run towards near-term horizontal-resistance following its U-turn from the 100-hour moving average (HMA) ticks it up to $1407.80 ahead of the European open on Wednesday.

Gold News

Conference Board Consumer Confidence: The China syndrome

The index declined to 121.5 in June from April’s revised 131.3. A much more modest drop to 131.2 had been predicted.  “The escalation in trade and tariff tensions earlier this month appears to have shaken consumers’ confidence,” wrote Lynn Franco.

Read more

Majors

Cryptocurrencies

Signatures