GBP/USD Technical Analysis: Short-term falling trendline to cap bounces off 50-day SMA

GBP/USD snaps four-day-old winning streak.
An upward sloping trend line since early-November will restrict the pair’s downside below 50-day SMA.

Anil Panchal FXStreet

GBP/USD turns mildly bid to 1.3042 amid Monday’s Asian session. The pair fails to extend the previous four-day fall while taking a U-turn from 50-day SMA.

Even so, prices are likely to find challenges in extending the recent recovery unless breaking a descending trend line since December 13, at 1.3125 now.

If the quote remains strong above 1.3125, it can easily aim for the monthly top surrounding 1.3180 while targeting 1.3300 round-figure during further upside.

Alternatively, pair’s declines below 50-day SMA level of 1.3023 will be capped by a two-month-old rising trend line, near 1.2970.

In a case where the Bears dominate past-1.2970, November month low and 100-day SMA, around 1.2770, will become their favorite.

GBP/USD daily chart

Trend: Sideways

Additional important levels

Overview
Today last price	1.3042
Today Daily Change	-0.0014
Today Daily Change %	-0.11%
Today daily open	1.3056

Trends
Daily SMA20	1.3091
Daily SMA50	1.3017
Daily SMA100	1.2755
Daily SMA200	1.2692

Levels
Previous Daily High	1.3098
Previous Daily Low	1.3042
Previous Weekly High	1.3213
Previous Weekly Low	1.3013
Previous Monthly High	1.3515
Previous Monthly Low	1.2896
Daily Fibonacci 38.2%	1.3064
Daily Fibonacci 61.8%	1.3077
Daily Pivot Point S1	1.3033
Daily Pivot Point S2	1.301
Daily Pivot Point S3	1.2978
Daily Pivot Point R1	1.3088
Daily Pivot Point R2	1.3121
Daily Pivot Point R3	1.3144

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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