#GBPUSD @ 1.16186 remains on the front foot after defying monthly bearish channel, crossing 10-DMA., @nehcap view: Further recovery expected (Pivot Orderbook analysis)

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• GBP/USD remains on the front foot after defying monthly bearish channel, crossing 10-DMA.
• Bull cross on MACD, firmer RSI also backs the pair’s recovery moves.
• Bears have a bumpy road to return, descending trend line from May is the key support.

The pair currently trades last at 1.16186.

The previous day high was 1.1648 while the previous day low was 1.15. The daily 38.2% Fib levels comes at 1.1591, expected to provide support. Similarly, the daily 61.8% fib level is at 1.1556, expected to provide support.

GBP/USD remains on the front foot as it keeps Friday’s upside break of the bearish channel and the 10-DMA hurdle during Monday’s Asian session. That said, the Cable pair grinds higher around 1.1620 at the latest.

Not only the upside break of the 10-DMA and rejection of the bearish chart pattern but the recently firmer RSI (14) and the strongest bullish MACD signal in a month also favor the GBP/USD buyers.

With this in mind, the pair bulls aim for the 21-DMA hurdle surrounding 1.1700 ahead of the UK’s key monthly statistics for July, namely Industrial Production, Gross Domestic Product (GDP) and Manufacturing Production.

It’s worth noting, however, that the GBP/USD upside past 1.1700 needs validation from July’s bottom surrounding 1.1760 to keep buyers on the board. Following that, a north-run towards the previous monthly high surrounding 1.2280 can’t be ruled out, with the 1.2000 likely acting as an intermediate halt.

Alternatively, pullback moves may initially rest on the 10-DMA resistance-turned-support, around 1.1555 by the press time, before revisiting the stated bearish channel’s upper line, close to 1.1500 at the latest.

In a case where GBP/USD remains bearish past 1.1500, a four-month-old downward sloping support line, near 1.1375, could challenge the sellers before directing them to the aforementioned channel’s bottom, at 1.1284 by the press time.

Trend: Further recovery expected

Technical Levels: Supports and Resistances

GBPUSD currently trading at 1.1621 at the time of writing. Pair opened at 1.1591 and is trading with a change of 0.26% % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 1.1732, 50 SMA 1.192, 100 SMA @ 1.216 and 200 SMA @ 1.2747.

The previous day high was 1.1648 while the previous day low was 1.15. The daily 38.2% Fib levels comes at 1.1591, expected to provide support. Similarly, the daily 61.8% fib level is at 1.1556, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 1.1511, 1.1431, 1.1362
• Pivot resistance is noted at 1.166, 1.1728, 1.1809

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