GBP/USD technical analysis: Holds tightly above 200-HMA

GBP/USD’s dip beneath 38.2% Fibonacci retracement fails to conquer 200-HMA.
1.2450/45 can lure sellers on the downside break of a key moving average.
Lower high formation portrays bears’ dominance while failure to slip below key support shows buying momentum.

Anil Panchal FXStreet

Even after breaking 38.2% Fibonacci retracement of late-June to early-July downpour, 200-hour moving average (HMA) limits the GBP/USD pair’s further declines as it trades near 1.2505 heading into the UK open on Monday.

While failure to slip below key support increases the odds of an upside, recent lower high formation portrays the bears’ dominance that can drag the quote back to 1.2450/45 support-zone if prices drop under 1.2498 level comprising 200-HMA.

Should there be increase downside past-1.2445, current month low around 1.2382 grabs market attention as it holds the key to pair’s fresh slump.

On the upside, 38.2% Fibonacci retracement level near 1.2516 and 50% Fibonacci retracement around 1.2560 could entertain buyers ahead of pleasing them with the 1.2600 round-figure.

GBP/USD hourly chart

Trend: Sideways

1. R3 1.2629
2. R2 1.2593
3. R1 1.2548
PP 1.2512
1. S1 1.2467
2. S2 1.2431
3. S3 1.2387

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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