Home GBP/USD technical analysis: On the back foot below short-term key resistance
FXStreet News

GBP/USD technical analysis: On the back foot below short-term key resistance

  • GBP/USD holds below 10-day EMA, 23.6% Fibonacci retracement.
  • 14-day old rising trend-line gains sellers attention.

GBP/USD stays under near-term key resistance-confluence as it takes the rounds to 1.2185 by early Friday’s morning session in Asia.

In addition to the pair’s sustained trading below the 10-day exponential moving average (EMA) and 23.6% Fibonacci retracement level of June-August declines, a gradual softening of 12-bar moving average convergence and divergence (MACD) histogram also portrays the underlying weakness in price momentum.

With this, sellers eye an upward sloping trend-line since August 12, near 1.2130, as immediate support whereas 1.2100 and monthly low of 1.2015 can please them afterward.

Alternatively, an upside break of 1.2200 resistance-mark can propel prices to 38.2% Fibonacci retracement and the weekly high surrounding 1.2310.

It should, however, be noted that pair’s run-up beyond 1.2310 enables it to conquer 50-day EMA level of 1.2332 while July 17 low of 1.2382 likely gaining GBP/USD buyers’ attention then after.

GBP/USD daily chart

Trend: bearish

 

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.