GBP/USD edged lower on Wednesday and retreated further from two-week tops. The technical set-up supports prospects for the emergence of some dip-buying. The GBP/USD pair stalled its overnight strong bullish momentum near the 50% Fibonacci level of the 1.2644-1.2076 recent downfall and witnessed a modest pullback on Wednesday. The retracement slide dragged the pair further below the 1.2300 round-figure mark during the early European session, with bears now flirting with 38.2% Fibo. level support. The mentioned level coincides with the lower end a downward sloping channel on intraday charts. Given the overnight strong upsurge, the channel seemed to constitute towards the formation of a bullish flag chart pattern. The technical set-up supports prospects for the emergence of some dip-buying, warranting some caution for aggressive bearish traders. Meanwhile, technical indicators on the daily chart have been recovering from the bearish territory and have also eased from overbought conditions on the 4-hourly chart. This makes it prudent to wait for some strong follow-through selling before confirming that bulls might have already run out of the steam and positioning for any further intraday downfall. That said, a convincing breakthrough the mentioned confluence support will negate the constructive outlook and prompt some technical selling. The pair might then accelerate the slide back towards 50-day SMA resistance breakpoint, near the 1.2270-65 area. The downward trajectory could further get extended towards 23.6% Fibo. level around the 1.2200 mark. On the flip side, the 1.2315-20 region now seems to act as immediate resistance and is closely followed by the trend-channel barrier, around the 1.2335 region. A sustained strength beyond the said hurdle will reinforce the bullish set-up and has the potential to lift the pair further towards reclaiming the 1.2400 round-figure mark. GBP/USD 1-hourly chart Technical levels to watch FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next USD/BRL: 6.00 is a realistic upper barrier – Credit Suisse FX Street 3 years GBP/USD edged lower on Wednesday and retreated further from two-week tops. The technical set-up supports prospects for the emergence of some dip-buying. The GBP/USD pair stalled its overnight strong bullish momentum near the 50% Fibonacci level of the 1.2644-1.2076 recent downfall and witnessed a modest pullback on Wednesday. The retracement slide dragged the pair further below the 1.2300 round-figure mark during the early European session, with bears now flirting with 38.2% Fibo. level support. The mentioned level coincides with the lower end a downward sloping channel on intraday charts. Given the overnight strong upsurge, the channel seemed to constitute towards… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.
