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.

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 
  1. PP 1.2512 
    1. S1 1.2467 
    2. S2 1.2431
    3. S3  1.2387


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 holding onto gains amid trade wars, ahead of German IFO

EUR/USD is trading around 1.1150, consolidating its gains after the escalation in US-Sino trade wars sent US yields and the greenback lower. German IFO Business Climate is next.


GBP/USD consolidates amid Brexit uncertainty

GBP/USD is trading below 1.2300, consolidating its gains. The UK and the EU have been blaming each other for a potential no-deal Brexit. US-Sino tensions are in play as well.


USD/JPY drops back below 105.50 amid US-Japan trade news

USD/JPY filled in the bearish opening gap and jumped to 105.78 highs amid upbeat comments from Chinese VIce-Premier Liu on trade before reversing sharply below the 105.50 level following reports on US-Japan trade progress. 


Gold: Risk-off rally stalls after US, China aim to calm trade war fears

Having surged to the fresh high since April 2013, Gold declines to the intra-day low of $1,538.50, before taking rounds to $1541.60, by the press time of early Monday. China shows readiness to have a calm discussion with the US.

Gold News

Forex Today: Trade wars paint markets in red, Brexit looks worse, and central banks are limited

Here is what you need to know on Monday, August 26th: The US-Sino trade war is painting global markets in the red. The US dollar is losing some ground to major currencies as yields plunge, while it gains against commodity currencies. Gold is rising and oil is falling.

Read more