GBP/USD Price Analysis: Weakens farther below mid-1.3000s, remains vulnerable


  • GBP/USD pair faded an intraday spike to levels beyond the 1.3100 handle.
  • The technical set-up suggests the resumption of the prior bearish trajectory.

The GBP/USD pair extended disappointing UK retail sales data-led intraday pullback from levels beyond the 1.3100 handle and dropped to fresh session lows, around the 1.3025 region in the last hour.

The early uptick beyond a confluence resistance – comprising of 200-period SMA on the 4-hourly chart and the top end of a three-week-old ascending trend-channel – turned out to be a false breakout.

The subsequent downfall, which erased the previous session's positive move, now point to the emergence of fresh selling pressure and support prospects for the resumption of the prior bearish trend.

Meanwhile, technical indicators on the daily chart maintained their bearish bias and have again started gaining negative momentum on hourly charts, supporting prospects for a further depreciating move.

Some follow-through selling below the key 1.30 psychological mark will reaffirm the bearish bias and turn the pair vulnerable to accelerate the slide towards weekly lows support near the 1.2955 region.

The momentum could further get extended towards the 1.2900 round-figure mark before the pair eventually drops to test the descending channel support, currently near the 1.2880-75 region.

On the flip side, any attempted recovery might now confront some fresh supply near the 1.3075 region and seems more likely to remain capped near the 1.3100-1.3110 confluence barrier.

GBP/USD 4-hourly chart

fxsoriginal

GBP/USD

Overview
Today last price 1.304
Today Daily Change -0.0036
Today Daily Change % -0.28
Today daily open 1.3076
 
Trends
Daily SMA20 1.3068
Daily SMA50 1.3031
Daily SMA100 1.2787
Daily SMA200 1.2691
 
Levels
Previous Daily High 1.3084
Previous Daily Low 1.3025
Previous Weekly High 1.3213
Previous Weekly Low 1.3013
Previous Monthly High 1.3515
Previous Monthly Low 1.2896
Daily Fibonacci 38.2% 1.3061
Daily Fibonacci 61.8% 1.3048
Daily Pivot Point S1 1.3039
Daily Pivot Point S2 1.3003
Daily Pivot Point S3 1.298
Daily Pivot Point R1 1.3098
Daily Pivot Point R2 1.3121
Daily Pivot Point R3 1.3157

 

 

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