#GBPUSD @ 1.25730 retreat from the highest level in a month, snaps three-day uptrend., @nehcap view: Pullback expected (Pivot Orderbook analysis)

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• GBP/USD retreat from the highest level in a month, snaps three-day uptrend.
• UK’s economic fears join US Dollar consolidation to push back Cable buyers.
• Six-week-old horizontal resistance challenges Pound Sterling bulls amid overbought RSI.
• Sellers need validation from 200-SMA to retake control.

The pair currently trades last at 1.25730.

The previous day high was 1.259 while the previous day low was 1.2534. The daily 38.2% Fib levels comes at 1.2569, expected to provide support. Similarly, the daily 61.8% fib level is at 1.2556, expected to provide support.

GBP/USD holds lower ground near the intraday bottom as it prints the first daily loss in four amid early Monday in Europe, mildly offered near 1.2570 at the latest. That said, the Cable pair rose in the last two consecutive weeks amid a broad US Dollar fall but concerns about the UK’s economic health and the market’s positioning for this week’s key data/events weigh on the Pound Sterling pair of late.

Also read: GBP/USD holds steady near multi-week top as traders await this week’s key data/event risks

Technically, a horizontal area comprising multiple levels marked since late April, around 1.2580-85, joins the overbought RSI (14) line to favor the latest weakness in the Cable pair. Adding strength to the downside bias is the looming bear cross on the MACD indicator.

With this, the quote is likely to extend the latest fall towards a one-month-long horizontal support zone of around 1.2540-35. Though, the 200-SMA level surrounding 1.2480 could challenge the GBP/USD bears afterward.

In a case where the Pound Sterling pair remains weak past 1.2535, the odds of witnessing a slump toward the previous monthly low of around 1.2310 can’t be ruled out.

Meanwhile, a successful upside break of the aforementioned horizontal resistance area near 1.2580-85 needs validation from the 1.2600 round figure to convince GBP/USD bulls.

Following that, a run-up to cross the previous monthly high of 1.2680 can be expected without hesitation.

Trend: Pullback expected

Technical Levels: Supports and Resistances

GBPUSD currently trading at 1.2569 at the time of writing. Pair opened at 1.258 and is trading with a change of -0.09% % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 1.2443, 50 SMA 1.2469, 100 SMA @ 1.2309 and 200 SMA @ 1.2016.

The previous day high was 1.259 while the previous day low was 1.2534. The daily 38.2% Fib levels comes at 1.2569, expected to provide support. Similarly, the daily 61.8% fib level is at 1.2556, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 1.2546, 1.2512, 1.249
• Pivot resistance is noted at 1.2602, 1.2624, 1.2658

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