#GBPUSD @ 1.14263 retreats from intraday high, fades bounce off yearly low., @nehcap view: Corrective pullback expected (Pivot Orderbook analysis)

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• GBP/USD retreats from intraday high, fades bounce off yearly low.
• Bullish candlestick formation, RSI conditions join three-month-old support line to lure bulls.
• Bears could aim for 1985 low on clear break of 1.1350.

The pair currently trades last at 1.14263.

The previous day high was 1.1442 while the previous day low was 1.1355. The daily 38.2% Fib levels comes at 1.1409, expected to provide support. Similarly, the daily 61.8% fib level is at 1.1389, expected to provide support.

GBP/USD struggles to extend the previous day’s rebound from a three-month-old support line, retreating to 1.1420 heading into Tuesday’s London open. Even so, the bullish candlestick formation and oversold RSI (14) tease the Cable pair buyers ahead of the key weekly events.

Read: GBP/USD dribbles above 1.1400 with eyes on yearly low, Fed vs. BOE divergence

GBP/USD pair’s rebound from the downward sloping support line from June portrayed a Dragonfly Doji at the lowest levels since 1985 during the previous day. The same joins oversold RSI conditions to keep buyers hopeful. It’s worth noting that the trend reversal suggesting candlestick has more importance if it’s at the multi-day low, as it’s in the case of the Cable pair.

However, the 5-DMA hurdle surrounding 1.1460 restricts the quote’s immediate upside ahead of the 21-DMA resistance near 1.1590.

In a case where the GBP/USD bulls keep reins past 1.1590, the monthly high near 1.1740 and July’s low of 1.1760 will be in focus.

Meanwhile, a downside break of the 1.1450 support line figures could quickly fetch the quote towards the 1.1000 psychological magnet. Following that, the year 1985 low near 1.0520 will be in focus.

Trend: Corrective pullback expected

Technical Levels: Supports and Resistances

GBPUSD currently trading at 1.1428 at the time of writing. Pair opened at 1.1424 and is trading with a change of 0.04 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 1.1597, 50 SMA 1.1862, 100 SMA @ 1.2096 and 200 SMA @ 1.2695.

The previous day high was 1.1442 while the previous day low was 1.1355. The daily 38.2% Fib levels comes at 1.1409, expected to provide support. Similarly, the daily 61.8% fib level is at 1.1389, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 1.1372, 1.132, 1.1285
• Pivot resistance is noted at 1.146, 1.1495, 1.1547

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