GBP/USD technical analysis: Looks south after shallow bounce

GBP/USD has charted a lower high despite the bull divergence of the RSI.
The pair risks falling to recent lows below 1.26.

Omkar Godbole FXStreet Contributor

GBP/USD seems to have charted a bearish lower high around 1.2750 and could revisit recent lows below 1.26.

The currency pair is currently trading at 1.2676, representing little change on the day.

Cable picked up a bid at 1.2559 on May 31, confirming a bullish divergence of the 14-day relative strength index (RSI).

The subsequent move higher was shallow with the pair repeatedly struggling to cross 1.2740-1.2760 range in six days to June 12 before falling back below 1.26 on Thursday.

The pair’s inability to post sustainable corrective rally despite the bullish divergence of the RSI indicates the bearish sentiment is still quite strong and now with a bearish lower high in place, a retest of 1.2559 looks likely.

A daily close above the June 7 high of 1.2763 is needed to invalidate the bearish setup.

Daily chart

Trend: Bearish

Technical levels

GBP/USD

Overview
Today last price	1.2676
Today Daily Change	0.0002
Today Daily Change %	0.02
Today daily open	1.2674

Trends
Daily SMA20	1.2681
Daily SMA50	1.2874
Daily SMA100	1.2988
Daily SMA200	1.2941

Levels
Previous Daily High	1.2708
Previous Daily Low	1.2662
Previous Weekly High	1.2763
Previous Weekly Low	1.261
Previous Monthly High	1.3178
Previous Monthly Low	1.2559
Daily Fibonacci 38.2%	1.268
Daily Fibonacci 61.8%	1.2691
Daily Pivot Point S1	1.2654
Daily Pivot Point S2	1.2635
Daily Pivot Point S3	1.2608
Daily Pivot Point R1	1.2701
Daily Pivot Point R2	1.2728
Daily Pivot Point R3	1.2747

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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