GBP/USD technical analysis: Oversold conditions helped bounce off 1.2600 handle, still seems vulnerable

   •  The GBP/USD pair managed to find decent support near the 1.2600 handle and recovered a major part of its early slide to fresh 4-1/2 month lows.

   •  In absence of any fresh fundamental catalyst, the intraday rebound could be solely attributed some short-covering amid highly oversold conditions.

Given this week's bearish break through the 1.2700-1.2680 horizontal support, the rebound runs the risk of fizzling out rather quickly and might still be seen as a selling opportunity near the mentioned support break-point.

Moreover, the fact that the pair remains well below its important moving averages - 50, 100 & 200-day SMA further add credence to the near-term bearish outlook amid the ongoing Brexit-related UK political chaos.

Meanwhile, the 50-day SMA is now looking to cross below the very important 200-day SMA, forming a death cross and indicating the potential for a major selloff back towards challenging the key 1.2500 psychological mark.

The bearish trajectory could further get extended towards yearly lows support around the 1.2400-1.2395 region - or near 21-month lows set in January, en-route the next static support near the 1.2370-65 region.

GBP/USD daily chart


Today last price 1.2641
Today Daily Change -0.0020
Today Daily Change % -0.16
Today daily open 1.2661
Daily SMA20 1.2927
Daily SMA50 1.3032
Daily SMA100 1.3017
Daily SMA200 1.2957
Previous Daily High 1.2721
Previous Daily Low 1.2624
Previous Weekly High 1.3042
Previous Weekly Low 1.2711
Previous Monthly High 1.3196
Previous Monthly Low 1.2865
Daily Fibonacci 38.2% 1.2661
Daily Fibonacci 61.8% 1.2684
Daily Pivot Point S1 1.2616
Daily Pivot Point S2 1.2572
Daily Pivot Point S3 1.2519
Daily Pivot Point R1 1.2713
Daily Pivot Point R2 1.2766
Daily Pivot Point R3 1.281



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: Buyers keep lurking around 13-day old support-line

Having bounced off 13-day old support-line, EUR/USD takes the bids to 1.1085 during early Tuesday. 23.6% Fibonacci retracement and 4H 100MA seem near-term key resistances.


GBP/USD: On the back foot around 1.2130 amid Brexit pessimism

GBP/USD clings to 10-day EMA after fresh signs of no-deal Brexit. The UK PM writes a letter to the EU showing alternative arrangements to Irish backstop ahead of Germany/France visit.


USD/JPY: Bulls in control with eye on the 107 handle

USD/JPY holds in the newly acquired 106 territories, boosted again overnight in a risk-on environment where US stocks moved sharply higher. Technical indicators in the mentioned time-frame remain within positive levels.


Gold holds stable below $1500 amid few fresh catalysts

Gold awaits fresh clues to extend the latest declines below 10-DMA. With the lack of fresh directives, Gold remains below $1,500 during the Asian session. Gold awaits fresh clues to extend the latest declines below 10-DMA.

Gold News

Bullish levels to watch after Binance announces Venus vs. Facebook's Libra

Cryptocurrencies have been advancing once again, with Bitcoin topping $10,500, Ethereum clawing its way back above $200, and Ripple extending its gains.

Read more