GBP/USD technical analysis: Oversold RSI favors pullbacks to previous support-line

GBP/USD seesaws near multi-month low but refrains from breaking 1.2000 round-figure.
Oversold RSI increases the odds for the pair’s pullback to five-month-old descending trend-line.

Anil Panchal FXStreet

Despite trading near the lowest levels since early 2017, GBP/USD refrains from further downside as it makes the rounds to 1.2035 while heading into the UK open on Monday.

Against the price momentum is the 14-bar relative strength index (RSI) that increases the odds for a pullback towards five-month-old resistance-line (previous support) at 1.2205. However, a sustained break of August 01 low near 1.2080 becomes necessary to initiate the recovery.

In a case where the quote rallies past-1.2205, July 17 low near 1.2382 will be on the buyer’s radar.

Meanwhile, a downside break of 1.2000 mark can look a validation from 2017 low near 1.1987 ahead of pleasing bears with 2016 bottom surrounding 1.1806.

GBP/USD daily chart

Trend: Pullback expected

Additional important levels

Overview
Today last price	1.2035
Today Daily Change	7 pips
Today Daily Change %	0.06%
Today daily open	1.2028

Trends
Daily SMA20	1.2304
Daily SMA50	1.2502
Daily SMA100	1.2727
Daily SMA200	1.2822

Levels
Previous Daily High	1.2154
Previous Daily Low	1.2023
Previous Weekly High	1.221
Previous Weekly Low	1.2023
Previous Monthly High	1.2706
Previous Monthly Low	1.2119
Daily Fibonacci 38.2%	1.2073
Daily Fibonacci 61.8%	1.2104
Daily Pivot Point S1	1.1983
Daily Pivot Point S2	1.1938
Daily Pivot Point S3	1.1852
Daily Pivot Point R1	1.2113
Daily Pivot Point R2	1.2199
Daily Pivot Point R3	1.2244

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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