GBP/USD technical analysis: Nears short-term key support amid bullish MACD

GBP/USD clings to the 1.2120/17 key support area.
A downside break will confirm short-term head and shoulders.

Anil Panchal FXStreet

Despite its failure to sustain latest upswing, GBP/USD refrains from further declines as it rests on the key supports while taking rounds to 1.2125 ahead of the UK session opening on Tuesday.

The 1.2120/17 area comprising neckline of three-day old head and shoulders and 100-hour moving average (HMA) becomes the key for sellers to watch as a downside break will confirm the bearish chart pattern and drag the quote to 1.2050/45 support-region.

However, a six-day old rising trend-line at 1.2080 will offer an intermediate halt during the downpour.

Limiting the sellers is bullish signal by 12-bar moving average convergence and divergence (MACD), which in turn can recall 1.2140 during the pullback.

Should prices rise above 1.2140, 1.2180 and August 06 high near 1.2210 will become bulls’ favorites.

GBP/USD hourly chart

Trend: Pullback expected

1. R3 1.2233
2. R2 1.2203
3. R1 1.2165
PP 1.2135
1. S1 1.2097
2. S2 1.2067
3. S3 1.2029

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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