GBP/USD Technical Analysis: Clings to key resistance trendline amid overbought RSI


  • GBP/USD nears the seven month high.
  • An upward sloping trend line since late-June, overbought conditions of RSI highlight October top as nearby support.
  • Bulls can target May high, yearly top during the further rise.

GBP/USD seesaws around 1.3100 during Thursday’s Asian session. The pair clings to a multi-month-old rising resistance line amid overbought conditions of 14-day Relative Strength Index (RSI).

Sellers look for entry below October month high, at 1.3013, to take aim at November top surrounding 1.2985. Though, 21-day Exponential Moving Average (EMA) could restrict the pair’s further declines near 1.2930.

Should prices decline below 21-day EMA, 61.8% Fibonacci retracement of March-September fall, at 1.2840, holds the key for the pair’s further south-run towards the previous month low near 1.2770 and 200-day EMA close to 1.2707.

On the contrary, bulls will wait for a successful break of Wednesday’s high of 1.3121 to target the May month top surrounding 1.3180.

Moreover, the pair’s extended rise past-1.3180 enables it to challenge 1.3270 and the yearly high around 1.3385.

GBP/USD daily chart

Trend: Pullback expected

additional important levels

Overview
Today last price 1.3109
Today Daily Change 0.0111
Today Daily Change % 0.85%
Today daily open 1.2998
 
Trends
Daily SMA20 1.289
Daily SMA50 1.2738
Daily SMA100 1.2507
Daily SMA200 1.2699
 
Levels
Previous Daily High 1.3013
Previous Daily Low 1.2925
Previous Weekly High 1.2952
Previous Weekly Low 1.2827
Previous Monthly High 1.2986
Previous Monthly Low 1.2769
Daily Fibonacci 38.2% 1.2979
Daily Fibonacci 61.8% 1.2959
Daily Pivot Point S1 1.2944
Daily Pivot Point S2 1.2891
Daily Pivot Point S3 1.2856
Daily Pivot Point R1 1.3032
Daily Pivot Point R2 1.3066
Daily Pivot Point R3 1.312

 

 

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. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD extends losses toward 1.1250 amid coronavirus concerns

EUR/USD is trading closer to 1.1250 as concerns about US coronavirus cases are growing. Eurozone finance ministers are meeting ahead of next week's summit.  US PPI and updated COVID-19 statistics are awaited.

EUR/USD News

GBP/USD pressured under 1.26 amid risk-off mood, Brexit uncertainty

GBP/USD is trading below 1.26, off the highs. Rising US coronavirus cases are pushing markets lower and the safe-haven dollar higher. Concerns about Brexit and the UK refusal to participate in the EU coronavirus vaccine scheme are weighing on sterling. 

GBP/USD News

Gold refreshes session tops, moves back above $1800 mark

The prevalent risk-off mood assisted gold to reverse an early dip to the $1796 region. A modest pickup in the USD demand might cap any further gains for the commodity. Investors also worried about the possibility of further escalation of Sino-US tensions.

Gold News

Canada Net Change in Employment June Preview: June is looking better and better

Job gains expected to more than double in June. Unemployment rate to drop to 12% from 13.7 in May. Ivey PMI was twice its forecast in June, highest since Nov 2019. USD/CAD would benefit from better June job figures.

Read more

WTI drops to fresh weekly lows below $39 amid virus risks, IEA forecast

WTI (August futures on Nymex) extends the steep declines seen on Thursday to drops over 1.50% in the European session this Friday. The oil bears breach the 39 level to hit the lowest levels in eight days at 38.76.

Oil News

Forex MAJORS

Cryptocurrencies

Signatures