#GBPUSD @ 1.18011 GBPUSD takes offers to poke previous resistance line from early October., @nehcap view: Limited downside expected (Pivot Orderbook analysis)

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• GBPUSD takes offers to poke previous resistance line from early October.
• Impending bear cross on MACD suggests further downside.
• Fortnight-old horizontal support, the convergence of the key SMAs challenge bears.
• Buyers need validation from the late August highs.

The pair currently trades last at 1.18011.

The previous day high was 1.1855 while the previous day low was 1.1648. The daily 38.2% Fib levels comes at 1.1776, expected to provide support. Similarly, the daily 61.8% fib level is at 1.1727, expected to provide support.

GBPUSD extends the week-start losses as sellers jostle with the one-month-old previous resistance around 1.1760 heading into Monday’s London open. In doing so, the Cable pair prints the first daily loss in three while reversing from a three-month high.

Given the looming bearish signals from the MACD, as well as the Cable pair’s failure to stay beyond 1.1800, the sellers are likely to break the resistance-turned-support.

However, a 13-day-old horizontal support near 1.1650 and a convergence of the 50-SMA and the 100-SMA, close to 1.1470, could challenge the GBPUSD bears afterward.

In a case where the Cable pair breaks the 1.1470 key support, the odds of witnessing a south-run towards the monthly low near 1.1150 can’t be ruled out.

Meanwhile, recovery moves need to refresh the monthly peak, currently surrounding 1.1855, to convince the GBPUSD buyers.

Even so, tops marked during late August, around 1.1900 threshold, could act as an additional upside filter to challenge the bulls.

Overall, GBPUSD is likely to witness a short-term downside but the room to the south is limited unless the pair breaks the 1.1470 support confluence.

Trend: Limited downside expected

Technical Levels: Supports and Resistances

GBPUSD currently trading at 1.1762 at the time of writing. Pair opened at 1.1845 and is trading with a change of -0.70% % .

The pair is trading above its 20 Daily moving average @ 1.1441, above its 50 Daily moving average @ 1.1337 , above its 100 Daily moving average @ 1.1661 and below its 200 Daily moving average @ 1.2266

The previous day high was 1.1855 while the previous day low was 1.1648. The daily 38.2% Fib levels comes at 1.1776, expected to provide support. Similarly, the daily 61.8% fib level is at 1.1727, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 1.171, 1.1575, 1.1503
• Pivot resistance is noted at 1.1917, 1.199, 1.2124

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