#GBPUSD @ 1.20209 struggles for clear directions after two-day downtrend., @nehcap view: Limited 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 struggles for clear directions after two-day downtrend.
• Convergence of 200-DMA, 100-DMA and three-month-old ascending trend line offers strong support.
• Bearish MACD signals, steady RSI suggests more downside.
• Recovery remains elusive below three-week-long descending resistance line.

The pair currently trades last at 1.20209.

The previous day high was 1.2075 while the previous day low was 1.1992. The daily 38.2% Fib levels comes at 1.2024, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.2043, expected to provide resistance.

GBP/USD picks up bids to reverse the early Asia losses, despite failing to gain traction above 1.2000. That said, the Cable pair seesaws around 1.2020-25 during Friday morning, following a two-day downtrend.

The quote’s latest weakness could be linked to the bear’s fears of strong support ahead as the 200-DMA and 100-DMA join an upward-sloping support line from late November 2022 to challenge the pair’s further downside near the 1.1940-20 area.

It’s worth noting, however, that the bearish MACD signals and the steady RSI (14) keep the GBP/USD sellers hopeful.

As a result, the quote’s further downside appears to have limited room unless breaking 1.1920 key support. In that case, a slump to the previous monthly low of 1.1840 becomes imminent before highlighting the mid-November 2022 swing low near 1.1760.

Should the GBP/USD bears keep the reins past 1.1760, the last October’s high of 1.1645 may return to the chart.

On the contrary, a three-week-old descending resistance line restricts immediate Cable moves near 1.2140, a break of which could quickly propel the pair towards the mid-February swing high of near 1.2270.

Following that, multiple tops marked around 1.2450 will be crucial to watch for the GBP/USD buyers.

Trend: Limited downside expected

Technical Levels: Supports and Resistances

GBPUSD currently trading at 1.2023 at the time of writing. Pair opened at 1.2023 and is trading with a change of 0.00% % .

The pair is trading below its 20 Daily moving average @ 1.2131, below its 50 Daily moving average @ 1.2153 , above its 100 Daily moving average @ 1.1932 and above its 200 Daily moving average @ 1.1933

The previous day high was 1.2075 while the previous day low was 1.1992. The daily 38.2% Fib levels comes at 1.2024, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.2043, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 1.1985, 1.1948, 1.1903
• Pivot resistance is noted at 1.2068, 1.2113, 1.2151

[/s2If]
Join Our Telegram Group