#GBPUSD @ 1.12960 reverses from one-week high as sellers approach 21-DMA, monthly support line., @nehcap view: Recovery expected (Pivot Orderbook analysis)

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• GBP/USD reverses from one-week high as sellers approach 21-DMA, monthly support line.
• Bullish MACD signals, firmer RSI (14) keeps buyers hopeful.
• One-month-old horizontal support adds to the downside filters.

The pair currently trades last at 1.12960.

The previous day high was 1.1315 while the previous day low was 1.106. The daily 38.2% Fib levels comes at 1.1218, expected to provide support. Similarly, the daily 61.8% fib level is at 1.1158, expected to provide support.

GBP/USD stays defensive around a one-month-long support line, after reversing from the highest levels in a week, to 1.1300 during early Monday morning in Europe.

In doing so, the Cable pair reverses from the 50-DMA while declining back towards an upward-sloping support line from September 28.

Given the bullish MACD signals and the steady RSI, the GBP/USD prices are likely to remain firmer unless breaking the aforementioned immediate support line surrounding 1.1230.

Even if the quote drops below 1.1260 support, the 21-DMA level near 1.1155 and the one-month-old horizontal support near 1.0935 could challenge the GBP/USD bears.

It should be noted that a clear downside break of 1.0935 won’t hesitate to challenge the record low of 1.0339. However, the 1.0650 and 1.0540 levels may offer intermediate halts during the fall.

Alternatively, a clear upside break of the 50-DMA hurdle surrounding 1.1415 could push the GBP/USD buyers toward the monthly high near 1.1490.

Following that, the 61.8% Fibonacci retracement level of the pair’s August-September declines and September’s peak, close to 1.1545 and 1.1740 in that order, will act as extra barriers to the north for the GBP/USD pair buyers to watch.

Trend: Recovery expected

Technical Levels: Supports and Resistances

GBPUSD currently trading at 1.1306 at the time of writing. Pair opened at 1.13 and is trading with a change of 0.05% % .

The pair is trading above its 20 Daily moving average @ 1.115, below its 50 Daily moving average @ 1.1429 , below its 100 Daily moving average @ 1.1784 and below its 200 Daily moving average @ 1.2419

The previous day high was 1.1315 while the previous day low was 1.106. The daily 38.2% Fib levels comes at 1.1218, expected to provide support. Similarly, the daily 61.8% fib level is at 1.1158, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 1.1135, 1.097, 1.0881
• Pivot resistance is noted at 1.139, 1.148, 1.1645

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