- GBP/USD recovers towards short-term key resistance-confluence.
- Bears can aim for a mark below 1.2000 if recent low breaks.
Unless successfully breaking nearby resistance-confluence, GBP/USD isn’t expected to carry the latest recovery forward as it trades around 1.2164 while heading into the UK open on Wednesday.
The said confluence region close to 1.2205/10 includes 50-hour moving average (HMA) and four-day-old descending trend-line, a break of which can trigger the pair’s fresh upside towards 1.2280 and 61.8% Fibonacci retracement level of latest declines, at 1.2370.
However, pair’s advances past-1.2370 will find multiple barriers near 1.2425/30 that holds the gate to its run-up in the direction to July 24 high near 1.2522.
On the downside, sellers can aim for 1.2100 on the break of 1.2120 whereas 2017 low of 1.1987 will be on their radars afterward.
GBP/USD hourly chart