GBP/USD Technical Analysis: Weekly chart indicates buyer exhaustion

Long upper wicks attached to GBP/USD weekly candles are signaling bullish exhaustion.
The daily chart is showing a lower highs setup.

Omkar Godbole FXStreet Contributor

GBP/USD is operating on slippery grounds and could drop below the psychological support of 1.30.

The back-to-back weekly candles with long upper shadows are signaling buyer exhaustion above 1.32. Also, these weekly candles indicate a failure on the part of the bulls to secure a close above the resistance of the trendline sloping downwards from 2014 and 2018 highs.

Further, the 5-week average has topped out and is trending south and the pair has established a lower high at 1.3284 on the daily chart.

So, the path of least resistance appears to be on the downside. A close above 1.3250 (lower high) is needed to confirm a bullish reversal. At press time, the pair is trading at 1.3035, representing moderate losses on the day.

Weekly chart

Trend: Bearish

Technical levels

GBP/USD

Overview
Today last price	1.3035
Today Daily Change	-0.0022
Today Daily Change %	-0.17
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

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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