#GBPUSD @ 1.07520 Price Analysis: Downside bias halts for a while on hammer formation (Pivot Orderbook analysis)

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The pair currently trades last at 1.07520.

The previous day high was 1.0931 while the previous day low was 1.0339. The daily 38.2% Fib levels comes at 1.0565, expected to provide support. Similarly, the daily 61.8% fib level is at 1.0705, expected to provide support.

The GBP/USD pair has advanced firmly after dropping to near 1.0356 as a responsive buying action kicked in. In the Asian session, the cable delivered an upside break of the consolidation formed in a narrow range of 1.0633-1.0724. The asset is expected to extend its gains above 1.0800 and will march towards 1.0900 ahead.

On a daily scale, the formation of a long Hammer candlestick pattern has triggered the chances of a pullback ahead. The formation of the above-mentioned single candlestick pattern indicates an activation of a ‘value bet’ phenomenon after an asset decline like a house of cards. Also, the downward sloping trendline placed from June 14 low at 1.1934 will act as a major barricade for the counter.

The 10-and-20-period Exponential Moving Averages (EMAs) at 1.1120 and 1.1335 are declining sharply, which adds to the downside filters.

Also, the Relative Strength Index (RSI) is oscillating in a bearish range of 20.00-40.00 for a longer period. Therefore, an oversold situation cannot be ruled out.

A break above Monday’s high at 1.0931 will activate the Hammer formation and will send the cable towards the round-level resistance at 1.1000, followed by 10-EMA at 1.1120.

On the flip side, the cable will lose significance further if drops below Monday’s low at 1.0339, which will drag the asset towards the round-level support at 1.0200. A slippage below the latter will direct the cable towards parity.

Technical Levels: Supports and Resistances

GBPUSD currently trading at 1.0761 at the time of writing. Pair opened at 1.0687 and is trading with a change of 0.69 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 1.1424, 50 SMA 1.1783, 100 SMA @ 1.2029 and 200 SMA @ 1.2641.

The previous day high was 1.0931 while the previous day low was 1.0339. The daily 38.2% Fib levels comes at 1.0565, expected to provide support. Similarly, the daily 61.8% fib level is at 1.0705, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 1.0374, 1.006, 0.9782
• Pivot resistance is noted at 1.0966, 1.1244, 1.1558

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