#GBPUSD @ 1.24152 bulls take a breather at six-month high, print mild losses of late., @nehcap view: Further downside expected (Pivot Orderbook analysis)
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- GBP/USD bulls take a breather at six-month high, print mild losses of late.
- Double tops, bearish wedge formation joins RSI retreat to tease sellers.
- Key Exponential Moving Averages (EMAs) challenge further downside.
The pair currently trades last at 1.24152.
The previous day high was 1.2447 while the previous day low was 1.2342. The daily 38.2% Fib levels comes at 1.2407, expected to provide support. Similarly, the daily 61.8% fib level is at 1.2382, expected to provide support.
GBP/USD retreats from a six-month high but the bears appear cautious ahead of the key Bank of England (BOE) monetary policy meeting early Thursday. That said, the Cable pair prints the first daily loss in seven days near 1.2420, despite posting meager losses as of late.
Also read: GBP/USD: Cable seesaws at six-month high ahead of Bank of England-inspired ‘Super Thursday’
It’s worth noting that the double tops around 1.2450 and the pullback in the RSI (14) signals that the GBP/USD bulls are running out of steam.
The same could direct the Cable pair toward the 1.2400 round figure before highlighting the 50-EMA level surrounding 1.2360.
However, a convergence of the 100-EMA and support line of a two-week-old rising wedge bearish chart pattern, near 1.2315, appears a tough nut to crack for the GBP/USD bears.
In a case where the Cable pair breaks the 1.2315 support, the 200-EMA level near 1.2255 could act as the last defense of the GBP/USD buyers before giving control to the bears.
On the contrary, a successful break of the double tops surrounding 1.2450 will need validation from the clear run-up past the aforementioned wedge’s upper line, close to 1.2470, to convince GBP/USD bulls.
Following that, the theoretical target for the double tops, near 1.2560, could lure the pair buyers before directing them to the May month’s peak near 1.2665.
Trend: Further downside expected
Technical Levels: Supports and Resistances
GBPUSD currently trading at 1.2417 at the time of writing. Pair opened at 1.2423 and is trading with a change of -0.05% % .
| Overview | Overview.1 | |
|---|---|---|
| 0 | Today last price | 1.2417 |
| 1 | Today Daily Change | -0.0006 |
| 2 | Today Daily Change % | -0.05% |
| 3 | Today daily open | 1.2423 |
The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 1.2115, 50 SMA 1.169, 100 SMA @ 1.1675 and 200 SMA @ 1.2109.
| Trends | Trends.1 | |
|---|---|---|
| 0 | Daily SMA20 | 1.2115 |
| 1 | Daily SMA50 | 1.1690 |
| 2 | Daily SMA100 | 1.1675 |
| 3 | Daily SMA200 | 1.2109 |
The previous day high was 1.2447 while the previous day low was 1.2342. The daily 38.2% Fib levels comes at 1.2407, expected to provide support. Similarly, the daily 61.8% fib level is at 1.2382, expected to provide support.
Note the levels of interest below:
- Pivot support is noted at 1.2361, 1.23, 1.2257
- Pivot resistance is noted at 1.2466, 1.2509, 1.257
| Levels | Levels.1 |
|---|---|
| Previous Daily High | 1.2447 |
| Previous Daily Low | 1.2342 |
| Previous Weekly High | 1.2345 |
| Previous Weekly Low | 1.2107 |
| Previous Monthly High | 1.2154 |
| Previous Monthly Low | 1.1147 |
| Daily Fibonacci 38.2% | 1.2407 |
| Daily Fibonacci 61.8% | 1.2382 |
| Daily Pivot Point S1 | 1.2361 |
| Daily Pivot Point S2 | 1.2300 |
| Daily Pivot Point S3 | 1.2257 |
| Daily Pivot Point R1 | 1.2466 |
| Daily Pivot Point R2 | 1.2509 |
| Daily Pivot Point R3 | 1.2570 |
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