#GBPUSD @ 1.26163 remains pressured after reversing from April 2022 high., @nehcap view: Pullback expected (Pivot Orderbook analysis)
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- GBP/USD remains pressured after reversing from April 2022 high.
- Overbought RSI conditions favor pullback from 78.6% Fibonacci Expansion (FE).
- One-month-old resistance-turned-support, 21-day EMA restrict short-term downside of the Cable pair.
- GBP/USD buyers keep the reins beyond April’s low of around 1.2275.
The pair currently trades last at 1.26163.
The previous day high was 1.2652 while the previous day low was 1.2561. The daily 38.2% Fib levels comes at 1.2618, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.2596, expected to provide support.
GBP/USD stays defensive near 1.2620 amid the early hours of Tuesday’s Asian session, following its pullback from the 13-month high. In doing so, the Cable pair retreats from the 78.6% Fibonacci Expansion (FE) of its moves from April 03 to May 02 amid the overbought RSI (14) conditions.
With the quote’s inability to provide a daily closing beyond May 2022 peak surrounding 1.2665, coupled with a pullback from the key FE level amid overbought RSI, the GBP/USD pair is likely to extend the latest retreat.
As a result, the previous resistance line stretched from early April, near 1.2580 by the press time, gains the market’s attention.
However, the 21-day Exponential Moving Average (EMA) surrounding the 1.2500 mark can challenge the GBP/USD bears afterward.
It’s worth noting that the Cable pair’s weakness past 1.2500 will direct it toward the last defense of the buyers, namely the previous monthly bottom of around 1.2275, a break of which could welcome the bears.
On the contrary, a daily closing beyond the mid-2022 peak of around 1.2665, as well as the 78.6% FE level of near 1.2675, becomes necessary to convince the GBP/USD pair buyers. Even so, the 1.2700 round figure can prod the quote’s further upside.
Should the GBP/USD bulls keep the reins past 1.2700, the March 2022 lows of around the 1.3000 psychological magnet will gain the market’s attention.
Trend: Pullback expected
Technical Levels: Supports and Resistances
GBPUSD currently trading at 1.2619 at the time of writing. Pair opened at 1.2632 and is trading with a change of -0.10% % .
| Overview | Overview.1 | |
|---|---|---|
| 0 | Today last price | 1.2619 |
| 1 | Today Daily Change | -0.0013 |
| 2 | Today Daily Change % | -0.10% |
| 3 | Today daily open | 1.2632 |
The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 1.2476, 50 SMA 1.2302, 100 SMA @ 1.2225 and 200 SMA @ 1.195.
| Trends | Trends.1 | |
|---|---|---|
| 0 | Daily SMA20 | 1.2476 |
| 1 | Daily SMA50 | 1.2302 |
| 2 | Daily SMA100 | 1.2225 |
| 3 | Daily SMA200 | 1.1950 |
The previous day high was 1.2652 while the previous day low was 1.2561. The daily 38.2% Fib levels comes at 1.2618, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.2596, expected to provide support.
Note the levels of interest below:
- Pivot support is noted at 1.2578, 1.2524, 1.2486
- Pivot resistance is noted at 1.2669, 1.2706, 1.276
| Levels | Levels.1 |
|---|---|
| Previous Daily High | 1.2652 |
| Previous Daily Low | 1.2561 |
| Previous Weekly High | 1.2652 |
| Previous Weekly Low | 1.2436 |
| Previous Monthly High | 1.2584 |
| Previous Monthly Low | 1.2275 |
| Daily Fibonacci 38.2% | 1.2618 |
| Daily Fibonacci 61.8% | 1.2596 |
| Daily Pivot Point S1 | 1.2578 |
| Daily Pivot Point S2 | 1.2524 |
| Daily Pivot Point S3 | 1.2486 |
| Daily Pivot Point R1 | 1.2669 |
| Daily Pivot Point R2 | 1.2706 |
| Daily Pivot Point R3 | 1.2760 |
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