GBP/USD technical analysis: Pullback from 2-week old resistance highlight 1.2071/70 confluence

GBP/USD extends pullback from a downward sloping trend-line since July 31.
The confluence of 100-HMA, 23.6% Fibonacci retracement becomes immediate support.
Four-day old support-line adds to the rest-points.

Anil Panchal FXStreet

Having reversed from a fortnight old resistance-line, GBP/USD takes the rounds to 1.2085 during early Friday morning in Asia.

The pair can now aim for 1.2071/70 support confluence including 100-hour moving average (HMA) and 23.6% Fibonacci retracement of July 31 to August 11 downpour, a break of which can further drag the quote to four-day long support-line at 1.2058 now.

Should there be increased selling pressure after 1.2058, 1.2040 and the latest low surrounding 1.2015 could be on the bears’ radar.

On the upside, 38.2% Fibonacci retracement level of 1.2105 and 200-HMA around 1.2107 can entertain buyers ahead of pushing them to again confront near-term key resistance-line and 50% Fibonacci retracement confluence close to 1.2132/33.

If prices rally past-1.2133, 1.2160 and 1.2210 are likely following numbers to appear on the chart.

GBP/USD hourly chart

Trend: Sideways

1. R3 1.215
2. R2 1.2126
3. R1 1.2093
PP 1.2069
1. S1 1.2036
2. S2 1.2012
3. S3 1.198

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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