#GBPUSD @ 1.11061 struggles to extend two-week-old resistance breakout as 100-EMA tests buyers., @nehcap view: Pullback expected (Pivot Orderbook analysis)

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• GBP/USD struggles to extend two-week-old resistance breakout as 100-EMA tests buyers.
• Pre-data anxiety, nearly overbought RSI (14) challenge immediate upside.
• Sellers need validation from two-day-old support, scheduled data to retake control.

The pair currently trades last at 1.11061.

The previous day high was 1.1122 while the previous day low was 1.0762. The daily 38.2% Fib levels comes at 1.0984, expected to provide support. Similarly, the daily 61.8% fib level is at 1.09, expected to provide support.

GBP/USD struggles for clear directions around the weekly top after a three-day uptrend as traders await the key statistics from the US and the UK during Friday. That said, the quote currently seesaws between the 100-EMA and the resistance-turned-support line while taking rounds to 1.1120.

It’s worth noting that the nearly overbought RSI conditions join the 100-EMA and the previous resistance line to challenge the pair’s latest moves, as well as the pre-data anxiety.

Also read: GBP/USD pause on the way to 1.1200 ahead of UK GDP, US PCE Inflation

It should be noted, however, that the comparative fundamental challenges for the UK and a seven-week-old resistance line portray the bearish bias for the GBP/USD pair.

Hence, sellers should be on the lookout for entries on a clear downside break of the immediate support line, near 1.1055 by the press time. Following that, an upward sloping support line from Wednesday, near 1.0965, could challenge the pair’s further downside.

Alternatively, an upside clearance of the 100-EMA hurdle, around 1.1195 at the latest, could aim for the downward sloping resistance line from August 10, near 1.1455 now.

If at all the GBP/USD buyers manage to cross the 1.1455 hurdle, the monthly high surrounding 1.1740 will be on their radar.

Trend: Pullback expected

Technical Levels: Supports and Resistances

GBPUSD currently trading at 1.1107 at the time of writing. Pair opened at 1.1119 and is trading with a change of -0.11% % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 1.132, 50 SMA 1.1719, 100 SMA @ 1.1989 and 200 SMA @ 1.2605.

The previous day high was 1.1122 while the previous day low was 1.0762. The daily 38.2% Fib levels comes at 1.0984, expected to provide support. Similarly, the daily 61.8% fib level is at 1.09, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 1.088, 1.0642, 1.0521
• Pivot resistance is noted at 1.1239, 1.136, 1.1598

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