GBP/USD Technical Analysis: Retreats from 4-month old descending trend-line hurdle

Haresh Menghani FXStreet

• The pair struggled to build on the overnight strong upsurge to two-month tops and started retreating from a four-month-old descending trend-line resistance.

• The mentioned trend-line has acted as a key hurdle and capped every attempted up-move beyond 100-day SMA on several occasions since late-September.

GBP/USD daily chart

• Meanwhile, slightly overbought conditions on the 1-hourly chart seemed to be one of the key factors prompting traders to take some profits off the table.

• However, bullish oscillators on 4-hourly/daily chart might now attract some dip buying interest near the 1.2930 horizontal resistance break-point turned support.

1-hourly chart

• This is closely followed by the 1.2900 handle (100-DMA) and 100-hour SMA, around the 1.2880 region, which should act as key support in the near-term.

• Failure to defend the said support levels would reinforce the descending trend-line barrier and prompt some aggressive technical selling around the major.

GBP/USD

Overview:
    Today Last Price: 1.2951
    Today Daily change: -37 pips
    Today Daily change %: -0.285%
    Today Daily Open: 1.2988
Trends:
    Daily SMA20: 1.275
    Daily SMA50: 1.2752
    Daily SMA100: 1.2892
    Daily SMA200: 1.3099
Levels:
    Previous Daily High: 1.3002
    Previous Daily Low: 1.2832
    Previous Weekly High: 1.2866
    Previous Weekly Low: 1.2704
    Previous Monthly High: 1.284
    Previous Monthly Low: 1.2477
    Daily Fibonacci 38.2%: 1.2937
    Daily Fibonacci 61.8%: 1.2897
    Daily Pivot Point S1: 1.288
    Daily Pivot Point S2: 1.2771
    Daily Pivot Point S3: 1.271
    Daily Pivot Point R1: 1.3049
    Daily Pivot Point R2: 1.311
    Daily Pivot Point R3: 1.3219

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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