GBP/USD technical analysis: Rising wedge at the top inflates downside risk

GBP/USD shows little resilience off-late.
One-week-old rising wedge surrounding monthly tops questions buyers.
100-HMA adds strength to the formation’s support line.

Anil Panchal FXStreet

GBP/USD portrays a short-term rising wedge bearish formation while trading near 1.2475 during the Asian session on Thursday.

The 12-bar moving average convergence and divergence (MACD) signals lack of the momentum inside the key technical pattern, indicating brighter chances of a breakout.

With the bearish pattern surrounding monthly top, bulls are quite concerned about the pair’s downside break of 1.2450/45 area, including 100-hour simple moving average (HMA) and formation support, as it will confirm the bearish play towards early last-week highs surrounding 1.2380 and then to September 12 low near 1.2280.

During the pair’s declines below 1.2280, 50% and 61.8% Fibonacci retracement levels of current month upside around 1.2240 and 1.2175 could lure the bears.

Meanwhile, 1.2510 and latest high close to 1.2530 can please near-term buyers prior to challenging them with a four-day-old rising trend-line, at 1.2540 now.

GBP/USD hourly chart

Trend: pullback expected

additional important levels

Overview
Today last price	1.2474
Today Daily Change	-25 pips
Today Daily Change %	-0.20%
Today daily open	1.2499

Trends
Daily SMA20	1.2277
Daily SMA50	1.2279
Daily SMA100	1.2507
Daily SMA200	1.2741

Levels
Previous Daily High	1.2528
Previous Daily Low	1.2393
Previous Weekly High	1.2508
Previous Weekly Low	1.2234
Previous Monthly High	1.231
Previous Monthly Low	1.2015
Daily Fibonacci 38.2%	1.2476
Daily Fibonacci 61.8%	1.2444
Daily Pivot Point S1	1.2419
Daily Pivot Point S2	1.2338
Daily Pivot Point S3	1.2283
Daily Pivot Point R1	1.2554
Daily Pivot Point R2	1.2609
Daily Pivot Point R3	1.269

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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