#GBPUSD @ 1.22278 remains sidelined after rising to the highest level in five months., @nehcap view: Limited downside expected (Pivot Orderbook analysis)

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• GBP/USD remains sidelined after rising to the highest level in five months.
• Overbought RSI, two-month-old resistance line challenge further upside.
• Bear need validation from the convergence of 200-DMA, previous resistance line from late June.

The pair currently trades last at 1.22278.

The previous day high was 1.2311 while the previous day low was 1.2046. The daily 38.2% Fib levels comes at 1.221, expected to provide support. Similarly, the daily 61.8% fib level is at 1.2147, expected to provide support.

GBP/USD treads water around mid-1.2200s after rising to the highest level since late June the previous day. In doing so the Cable pair portrays the market’s cautious mood ahead of the key US employment data while also justifying the price-negative technical signals.

Among them, overbought conditions of the Relative Strength Index (RSI) line, placed at 14, gain major attention as the quote struggles after a two-day uptrend that refreshed the multi-day peak.

Also challenging the GBP/USD bulls is the upward-sloping resistance line from early October, currently around 1.2280.

Just in case a wild move cracks the 1.2280 hurdle, the 1.2300 round figure and the mid-June high near 1.2410 could act as additional upside filters to watch during the quote’s further advances.

On the contrary, pullback remains elusive unless the GBP/USD pair remains beyond 1.2150 level comprising the 200-DMA and the resistance-turned-support line from late June.

Additionally, a convergence of the August month’s high and the weekly bottom also constitutes short-term key support near 1.1900 and may test the bears before giving them control.

Following that, tops marked in September and October, respectively near 1.1735 and 1.1645 will be in focus.

Trend: Limited downside expected

Technical Levels: Supports and Resistances

GBPUSD currently trading at 1.2242 at the time of writing. Pair opened at 1.2243 and is trading with a change of -0.01% % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 1.184, 50 SMA 1.1475, 100 SMA @ 1.1651 and 200 SMA @ 1.2155.

The previous day high was 1.2311 while the previous day low was 1.2046. The daily 38.2% Fib levels comes at 1.221, expected to provide support. Similarly, the daily 61.8% fib level is at 1.2147, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 1.2089, 1.1935, 1.1824
• Pivot resistance is noted at 1.2354, 1.2465, 1.2619

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