GBP/USD technical analysis: The recent recovery falters near 1.2580-85 congestion zone
- The GBP/USD pair stalled its recent corrective bounce from six-month lows and once again started retreating from the 1.2580-85 congestion zone.
- The mentioned hurdle coincides with 38.2% Fibo. level of the 1.2785-1.2440 downfall and should now act as a key pivotal point for short-term traders.
Meanwhile, technical indicators on hourly charts have been losing positive momentum and maintained their bearish bias on the daily chart, supporting prospects for a fresh leg of a downfall, albeit lack of fresh catalyst might limit the downside.
Despite the intraday pullback, the pair has still managed to hold its neck above 200-hour SMA, which is closely followed by a support marked by 23.6% Fibo. level – around the 1.2520 region and the key 1.2500 psychological mark.
Failure to defend the mentioned supports will indicate the resumption of the prior/well-established bearish trend and turn the pair vulnerable to accelerate the slide back towards the recent swing lows, around the 1.2440 region.
On the flip side, bulls are likely to wait for a sustained move above the 1.2580-85 supply zone before positioning for a move beyond the 1.2600 round figure mark towards the next major hurdle near the 1.2645-50 zone (61.8% Fibo. level).
GBP/USD 1-hourly chart
-636987874645406951.png&w=1536&q=95)
Author
Haresh Menghani
FXStreet
Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.
