GBP/USD technical analysis: Struggles between 50-DMA and 1.2380/85 supply-zone

GBP/USD seesaws around 1.2330.
A downside break of 50-DMA can recall early-August lows while 100-DMA could question buyers beyond 1.2385.

Anil Panchal FXStreet

GBP/USD holds the title of least volatile major currency pair as it trades near 1.2330 during the Asian session on Friday.

The pair has been choppy off-late with 50-day simple moving average (DMA) limiting the quote’s downside around 1.2275 while the advances seem capped by a horizontal area including July 17 low and current week high, near 1.2380/85.

However, above 50 levels of 14-bar relative strength index (RSI) favor buyers who can target the 100-DMA level of 1.2515 on the successful break of 1.2385.

Additionally, 50% Fibonacci retracement level of May-September declines, at 1.2570, and 61.8% Fibonacci retracement near 1.2710 could please the bulls past-1.2515.

Alternatively, pair’s daily closing below 50-DMA level of 1.2275 can fetch the quote to an early-August high near 1.2210 whereas 1.2100 and 1.2015 could act as an intermediate halt during the pair’s further declines targeting 1.2000 round-figure.

GBP/USD daily chart

Trend: sideways

1. R3 1.2424
2. R2 1.2398
3. R1 1.2364
PP 1.2338
1. S1 1.2304
2. S2 1.2278
3. S3 1.2244

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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