#GBPUSD @ 1.22033 retreats from intraday high to pare the biggest weekly gain since late November., @nehcap view: Further downside expected (Pivot Orderbook analysis)

…
This is a premium post.
[s2If !current_user_can(access_s2member_level4)]Please register for PREMIUM VERSION HERE to read full post below containing analysis. In case of any error or you think you are not able to read the full post below, please email us at support#nehcap.com [lwa][/s2If] [s2If current_user_can(access_s2member_level4)]

• GBP/USD retreats from intraday high to pare the biggest weekly gain since late November.
• RSI pullback from nearly overbought conditions adds strength to the pullback moves.
• 200-SMA, weekly support line appears crucial challenge for bears.
• UK monthly GDP, output and trade numbers for November will be crucial to watch.

The pair currently trades last at 1.22033.

The previous day high was 1.2247 while the previous day low was 1.2088. The daily 38.2% Fib levels comes at 1.2186, expected to provide support. Similarly, the daily 61.8% fib level is at 1.2149, expected to provide support.

GBP/USD prints mild losses around 1.2200 as bulls take a breather at the monthly high ahead of the key UK data on early Friday. In doing so, the Cable pair consolidates the biggest weekly gains in six while printing the double top bearish chart formation on the four-hour play.

Also read: GBP/USD picks demand around 1.2200 as risk appetite improves further

Additionally, teasing the GBP/USD bears could be the sluggish MACD signals and the RSI (14) retreat from the nearly overbought region.

However, the 200-SMA and an upward-sloping trend line from January 06, respectively near 1.2140 and 1.2115, appear tough nuts to crack for the GBP/USD pair sellers.

Following that, a downward trajectory toward the monthly low of 1.1841 can’t be ruled out.

It’s worth noting that the GBP/USD weakness past 1.1841 will confirm the “double tops” and will theoretically signal a south-run to 1.1440.

Alternatively, an upside clearance of the 1.2250 level will defy the bearish chart pattern, which in turn will direct GBP/USD buyers towards the previous monthly high surrounding 1.2445-50.

In case where the Cable pair remains firmer past 1.2450, its run-up towards May 2022 high near 1.2665 can’t be ruled out.

Trend: Further downside expected

Technical Levels: Supports and Resistances

GBPUSD currently trading at 1.2207 at the time of writing. Pair opened at 1.2214 and is trading with a change of -0.06% % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 1.2084, 50 SMA 1.202, 100 SMA @ 1.1683 and 200 SMA @ 1.2001.

The previous day high was 1.2247 while the previous day low was 1.2088. The daily 38.2% Fib levels comes at 1.2186, expected to provide support. Similarly, the daily 61.8% fib level is at 1.2149, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 1.212, 1.2025, 1.1961
• Pivot resistance is noted at 1.2278, 1.2342, 1.2437

[/s2If]
Join Our Telegram Group