GBP/USD technical analysis: Sellers eye 200-HMA, 1.2077/78 support-confluence

GBP/USD remains on the back foot below 100-HMA.
200-HMA can entertain sellers before 61.8% Fibonacci retracement, eight-day-old support-line come into play.

Anil Panchal FXStreet

With its sustained trading below 100-hour moving average (HMA), GBP/USD drops to 1.2122 ahead of the UK market open on Thursday.

As a result, odds are high for the pair’s drop to 200-HMA support of 1.2104. However, 1.2078/77 confluence including 61.8% Fibonacci retracement of last two weeks’ run-up and an upward sloping trend-line since August 11 will challenge bears afterward.

In a case where prices plummet below 1.2077, 1.2050/45 and 1.2015 will again appear on the chart.

On the flip side, 1.2136/37 including 100-HMA and immediate declining trend-line exert downside pressure on the pair, a break of which could quickly propel the quote to week’s high around 1.2183.

GBP/USD hourly chart

Trend: Pullback expected

1. R3 1.223
2. R2 1.2204
3. R1 1.2166
PP 1.2139
1. S1 1.2101
2. S2 1.2074
3. S3 1.2036

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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