GBP/USD technical analysis: Bulls cheer break of 13-day old resistance-line

GBP/USD holds firm above 23.6% Fibonacci retracement after breaking short-term resistance-line.
A six-day-old ascending trend-line appears as immediate resistance.

Anil Panchal FXStreet

Following its break of 13-day old descending trend-line, GBP/USD successfully trades above 23.6% Fibonacci retracement of its mid-July to early-August declines while flashing 1.2160 as a quote ahead of the UK open on Monday.

As a result, buyers may again target short-term rising trend-line, at 1.2190, during further upside. However, 38.2% Fibonacci retracement level of 1.2230 will become a tough challenge for them considering near overbought conditions of 14-bar relative strength index (RSI).

It worth noting that pair’s rise beyond 1.2230 opens its fresh leg up towards 50% and 61.8% Fibonacci retracement levels around 1.2300 and 1.2365 respectively.

In a case prices slip below 23.6% Fibonacci retracement level of 1.2145, the resistance-turned-support at 1.2115 regains traders’ attention as a break of which can pull the pair back to 1.2080, 1.2050 and 1.2015 support levels.

GBP/USD 4-hour chart

Trend: Pullback expected

1. R3 1.2288
2. R2 1.2232
3. R1 1.219
PP 1.2133
1. S1 1.2091
2. S2 1.2035
3. S3 1.1992

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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