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. 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

Editors’ Picks

USD/JPY keeps loses below 107.50 amid upbeat Japan data dump, risk-off

USD/JPY keeps the red below 107.50, as the yen remains well bid amid US-China tensions and upbeat Japanese data dump. The Asian stocks and S&P 500 futures flash red. Focus shifts to the US data and President Trump's response to the Hong Kong issue. 


AUD/USD: Choppy within range below 0.6650 amid US-China risks

AUD/USD remains depressed around 0.6640 so far this Friday. Risk-tone remains heavy as global equities are weighed down by escalating US-China tensions over the Hong Kong security issue, with all eyes now on Trump's presser. 


Eurozone Inflation Preview: A sub-zero rate may be insufficient to down the euro

Preliminary eurozone CPI data for May will likely show depressed inflation. Without shocking figures, the EUR/USD has room to rise, in the opinion of FXStreet’s analyst Yohay Elam.Key quotes: “Petrol will likely put pressure on CPI."

Read more

Gold picks up a bid amid losses in the US stock futures

Gold, a traditional safe-haven asset, is drawing bids as the US stock futures are signaling risk aversion. China imposed the controversial national security bill on Hong Kong on Thursday. Markets fear the US would retaliate with sanctions on China.

Gold News

WTI eyes record monthly surge

While West Texas Intermediate (WTI) crude's front-month contract has backed off from the 2.5-month highs reached earlier this week due to deteriorating US-China tensions, it is still on track to post its biggest monthly gain on record. 

Oil News