#GBPUSD @ 1.20298 consolidates the biggest daily loss in a fortnight around weekly low., @nehcap view: Limited downside expected (Pivot Orderbook analysis)

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• GBP/USD consolidates the biggest daily loss in a fortnight around weekly low.
• Ascending trend lines from January and last November precede 200-DMA to challenge bears.
• U-turn from 50-DMA, bearish MACD signals favor sellers.

The pair currently trades last at 1.20298.

The previous day high was 1.227 while the previous day low was 1.2118. The daily 38.2% Fib levels comes at 1.2212, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.2176, expected to provide resistance.

GBP/USD stays defensive around 1.2030, bouncing off the weekly low, as it licks the previous day’s wounds during early Thursday.

In doing so, the Cable pair rebounds from a six-week-old support line after falling the most in a fortnight. The recovery moves, however, remain elusive considering the quote’s sustained U-turn from the 50-DMA and the bearish MACD signals.

It’s worth noting, though, that the ascending support lines from early January and mid-November 2022, respectively around 1.2000 and 1.1985 in that order, restrict the short-term downside of the GBP/USD pair.

Following that, the 200-DMA level of 1.1940 gains the major attention of the bears targeting the mid-November 2022 bottom around 1.1760. However, the previous monthly low surrounding 1.1840 could offer an intermediate halt during the fall.

Meanwhile, GBP/USD rebound recovery remains elusive unless crossing the 50-DMA hurdle of near 1.2180.

In a case where the GBP/USD price remains firmer past 50-DMA, a one-month-old horizontal resistance near 1.2260 will be in focus as it holds the key for the Cable pair’s run-up toward the multiple tops marked since late 2022 around 1.2450.

Overall, GBP/USD is likely to remain depressed but the downside room appears limited.

Trend: Limited downside expected

Technical Levels: Supports and Resistances

GBPUSD currently trading at 1.2034 at the time of writing. Pair opened at 1.2177 and is trading with a change of -1.17% % .

The pair is trading below its 20 Daily moving average @ 1.2249, below its 50 Daily moving average @ 1.2186 , above its 100 Daily moving average @ 1.1874 and above its 200 Daily moving average @ 1.1943

The previous day high was 1.227 while the previous day low was 1.2118. The daily 38.2% Fib levels comes at 1.2212, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.2176, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 1.2107, 1.2036, 1.1954
• Pivot resistance is noted at 1.2259, 1.234, 1.2411

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