#GBPUSD @ 1.14166 licks its wounds near the lowest levels since 1985., @nehcap view: Corrective bounce expected (Pivot Orderbook analysis)

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• GBP/USD licks its wounds near the lowest levels since 1985.
• Oversold RSI conditions, short-term support line restrict immediate downside amid the UK’s bank holiday.
• Recovery remains elusive below the 21-DMA nearly resistance, key FE levels may entertain bears below the stated support line.
• Bearish trend is likely to prevail but a short-term rebound can’t be ruled out.

The pair currently trades last at 1.14166.

The previous day high was 1.148 while the previous day low was 1.1351. The daily 38.2% Fib levels comes at 1.14, expected to provide support. Similarly, the daily 61.8% fib level is at 1.1431, expected to provide resistance.

GBP/USD stays defensive at around 1.1415-20 during the sluggish Asian session on Monday, after bouncing off the lowest levels since 1985 the previous day.

The Cable pair’s latest rebound could be linked to the oversold RSI (14), as well as the quote’s inability to break a downward sloping support line from mid-May.

It should, however, be noted that the recovery remains elusive until the quote stays below the 21-DMA resistance level near 1.1590.

Following that, the monthly high near 1.1740 and July’s bottom surrounding 1.1760 will be in focus.

Alternatively, GBP/USD bears may keep attacking the aforementioned support line, at 1.1330 before aiming for the 61.8% and 78.6% Fibonacci Expansion (FE) levels, respectively near 1.1285 and 1.1170.

In a case where the Cable bears keep reins past 1.1170, the 1.1000 psychological magnet and the year 1985 low near 1.0520 should gain the market’s attention.

Overall, GBP/USD is likely to remain bearish but hopes of a short-term rebound remain on the table.

Trend: Corrective bounce expected

Technical Levels: Supports and Resistances

GBPUSD currently trading at 1.1418 at the time of writing. Pair opened at 1.1421 and is trading with a change of -0.03% % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 1.1614, 50 SMA 1.1871, 100 SMA @ 1.2107 and 200 SMA @ 1.2704.

The previous day high was 1.148 while the previous day low was 1.1351. The daily 38.2% Fib levels comes at 1.14, expected to provide support. Similarly, the daily 61.8% fib level is at 1.1431, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 1.1354, 1.1288, 1.1225
• Pivot resistance is noted at 1.1484, 1.1547, 1.1614

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