Home GBP/USD Technical Analysis: On the bids above 100-bar SMA
FXStreet News

GBP/USD Technical Analysis: On the bids above 100-bar SMA

  • GBP/USD extends recovery from 50% Fibonacci retracement level.
  • Bullish MACD indicates pair’s another run-up to the short-term key resistance line.

GBP/USD holds on to recovery gains from 50% Fibonacci retracement level while taking the bids to 1.2885 during the early Asian session on Friday.

The pair’s bounce from 50% Fibonacci retracement of late-October advances gains supports from bullish MACD, which in turn favors pair’s another attempt to clear three-week-old falling trend line, near 1.2930.

However, the pair’s successful break of 1.2930 is less likely to stop unless meeting the 1.3000 mark.

In a case where sellers ignore a bullish signal from the 12-bar Moving Average Convergence and Divergence (MACD) indicator, 100-bar Simple Moving Average (SMA) near 1.2865 could act as immediate support ahead of 38.2% and 50% Fibonacci retracement levels of 1.2823 and 1.2764 respectively.

It should also be noted that pair’s declines below 1.2764 could strength bears to target 61.8% Fibonacci retracement level of 1.2707 and mid-October highs near 1.2650.

GBP/USD 4-hour chart

Trend: Further recovery looks likely

 

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.