GBP/USD technical analysis: Bounces off low, upside likely to remain capped near 1.2700 handle

Disappointing UK macro data-led slide dragged the GBP/USD pair below an important confluence support - comprising of 100-hour SMA and over one-week-old ascending trend-line.
The pair subsequent dropped below 38.2% Fibonacci retracement level of the 1.2559-1.2762 recent corrective bounce and 200-hour SMA, paving the way for a further near-term downfall.

Haresh Menghani FXStreet

The pair, however, showed some resilience below the 50% Fibonacci retracement level and recovered a bit. The uptick quickly ran out of the steam near the 38.2% Fibo. level, which should now act as a key pivotal point for intraday bullish traders.

Meanwhile, technical indicators on the daily chart maintained their bearish bias and have also started gaining negative traction on the 4-hourly chart, pointing to a follow-through weakness amid persistent UK political and Brexit uncertainties.

Hence, any attempted recovery back towards the confluence support breakpoint - near the 1.2700-1.2710 region, might still be seen as a selling opportunity for an eventual slide towards 61.8% Fibo. level support near the 1.2635 region.

GBP/USD 1-hourly chart

GBP/USD

Overview
Today last price	1.2672
Today Daily Change	-0.0065
Today Daily Change %	-0.51
Today daily open	1.2737

Trends
Daily SMA20	1.2718
Daily SMA50	1.2908
Daily SMA100	1.3
Daily SMA200	1.2945

Levels
Previous Daily High	1.2763
Previous Daily Low	1.2688
Previous Weekly High	1.2763
Previous Weekly Low	1.261
Previous Monthly High	1.3178
Previous Monthly Low	1.2559
Daily Fibonacci 38.2%	1.2734
Daily Fibonacci 61.8%	1.2717
Daily Pivot Point S1	1.2696
Daily Pivot Point S2	1.2654
Daily Pivot Point S3	1.2621
Daily Pivot Point R1	1.2771
Daily Pivot Point R2	1.2804
Daily Pivot Point R3	1.2846

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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