GBP/USD technical analysis: Remains confined in range near 1.2330-40 confluence region

  • Struggles for a firm direction amid persistent Brexit-related uncertainties.
  • Neutral oscillators warrant caution before placing any aggressive bets.

Barring a knee-jerk reaction last Thursday, the GBP/USD pair has been oscillating well within a broader trading range held over the past one week or so and lacked any firm near-term directional bias. The pair extended its sideways consolidative price action at the start of a new trading week and was seen hovering around the 1.2330-40 confluence zone.
The mentioned region comprises of 38.2% Fibonacci level of the 1.1958-1.2583 strong move up and 200-period EMA on the 4-hourly chart, which should act as a key pivotal point for short-term traders. Meanwhile, neutral technical indicators on hourly/daily charts warrant caution before placing any aggressive bets amid Brexit-related uncertainties.
Meanwhile, a sustained strength beyond the said barrier might set the stage for a further near-term appreciating move back towards the 1.2400 handle. The momentum could further get extended towards 23.6% Fibo. level resistance - around the 1.2435 region – before bulls eventually aim towards reclaiming the key 1.2500 psychological mark.
On the flip side, the 1.2300 round-figure mark now seems to protect the immediate downside, which is followed by strong support near the 1.2270-65 region – marking 50% Fibo. level. Failure to defend the said support now seems to accelerate the slide further towards challenging the 1.2200 round-figure mark – support marked by 61.8% Fibo. level.

GBP/USD 4-hourly chart



Today last price 1.2328
Today Daily Change -0.0006
Today Daily Change % -0.05
Today daily open 1.2334
Daily SMA20 1.2385
Daily SMA50 1.2252
Daily SMA100 1.2429
Daily SMA200 1.2723
Previous Daily High 1.2357
Previous Daily Low 1.2276
Previous Weekly High 1.2414
Previous Weekly Low 1.2205
Previous Monthly High 1.2583
Previous Monthly Low 1.1958
Daily Fibonacci 38.2% 1.2326
Daily Fibonacci 61.8% 1.2307
Daily Pivot Point S1 1.2288
Daily Pivot Point S2 1.2241
Daily Pivot Point S3 1.2207
Daily Pivot Point R1 1.2369
Daily Pivot Point R2 1.2403
Daily Pivot Point R3 1.245



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