GBP/USD technical analysis: Struggles near 4-month old support-line, 1.2477, 1.2438 next on bears’ radar

Descending trend-line from mid-February question bears targeting December bottom and YTD lows amid oversold RSI.
21-DMA acts as immediate resistance to watch during the pullback.

Anil Panchal FXStreet

Despite trading near yearly lows, a 4-month old descending support-line limits the GBP/USD pair’s immediate declines as it trades near 1.2535 ahead of the UK open on Tuesday.

In addition to a downward sloping trend-line from mid-February, at 1.2525, oversold levels of 14-day relative strength index (RSI) also signal brighter chances of its pullback to 1.2580 and then to 1.2660 resistances.

Further, the break of 1.2660 enables the pair’s rally to 21-day simple moving average (SMA) level near 1.2660 and the month’s high surrounding 1.2765.

Given the bears dominate price sentiment and drag the quote under 1.2525 on a daily closing basis, December 2018 low near 1.2477 and the current year bottom around 1.2438 could flash on their radars.

GBP/USD daily chart

Trend: Pullback expected

1. R3 1.2658
2. R2 1.2632
3. R1 1.2583
PP 1.2558
1. S1 1.2509
2. S2 1.2483
3. S3 1.2434

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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