GBP/USD Technical Analysis: On the bids above 100-bar SMA
- GBP/USD extends recovery from 50% Fibonacci retracement level.
- Bullish MACD indicates pair’s another run-up to the short-term key resistance line.
GBP/USD holds on to recovery gains from 50% Fibonacci retracement level while taking the bids to 1.2885 during the early Asian session on Friday.
The pair’s bounce from 50% Fibonacci retracement of late-October advances gains supports from bullish MACD, which in turn favors pair’s another attempt to clear three-week-old falling trend line, near 1.2930.
However, the pair’s successful break of 1.2930 is less likely to stop unless meeting the 1.3000 mark.
In a case where sellers ignore a bullish signal from the 12-bar Moving Average Convergence and Divergence (MACD) indicator, 100-bar Simple Moving Average (SMA) near 1.2865 could act as immediate support ahead of 38.2% and 50% Fibonacci retracement levels of 1.2823 and 1.2764 respectively.
It should also be noted that pair’s declines below 1.2764 could strength bears to target 61.8% Fibonacci retracement level of 1.2707 and mid-October highs near 1.2650.
GBP/USD 4-hour chart
Trend: Further recovery looks likely
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.
