#GBPUSD @ 1.18526 GBPUSD remains sidelined after reversing from a three-month high., @nehcap view: Pullback expected (Pivot Orderbook analysis)

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• GBPUSD remains sidelined after reversing from a three-month high.
• A multi-day-old resistance line challenge buyer amid nearly overbought RSI.
• Sellers need validation from 61.8% Fibonacci retracement level, 100-DMA.
• 200-DMA, highs marked in August act as extra upside filters.

The pair currently trades last at 1.18526.

The previous day high was 1.2029 while the previous day low was 1.1741. The daily 38.2% Fib levels comes at 1.1919, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.1851, expected to provide support.

GBPUSD bulls run out of steam as traders await the key UK inflation numbers during early Wednesday. While portraying the sentiment among the Cable pair traders, the quote retreats from a downward-sloping resistance line from June 15 amid a nearly overbought RSI.

It’s worth noting, however, that the MACD conditions are still bullish as the quote trades successfully beyond the 100-DMA.

Hence, the anticipated pullback could aim for the 61.8% Fibonacci retracement level of the pair’s May-September downturn, around 1.1785, but may struggle to conquer the 100-DMA level surrounding 1.1650.

Should the GBPUSD bears manage to smash the key moving average support near 1.1650, also comprising the previous monthly high, the prices may drop towards a seven-week-old support line, close to 1.1390 by the press time.

Alternatively, an upside clearance of the aforementioned resistance line from June, close to 1.2030, restricts the GBPUSD pair’s short-term advances.

Following that, the 200-DMA hurdle near 1.2240 and the August month high near 1.2280 can challenge the buyers before directing them to the May 27 high of 1.2666.

To sum up, GBPUSD teases sellers ahead of the key data but the road to the south is long and bumpy.

Trend: Pullback expected

Technical Levels: Supports and Resistances

GBPUSD currently trading at 1.1864 at the time of writing. Pair opened at 1.1862 and is trading with a change of 0.02% % .

The pair is trading above its 20 Daily moving average @ 1.1488, above its 50 Daily moving average @ 1.1349 , above its 100 Daily moving average @ 1.1652 and below its 200 Daily moving average @ 1.2249

The previous day high was 1.2029 while the previous day low was 1.1741. The daily 38.2% Fib levels comes at 1.1919, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.1851, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 1.1726, 1.1589, 1.1438
• Pivot resistance is noted at 1.2014, 1.2165, 1.2302

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