GBPUSD @ 1.21051 – Support/Resistance analysis: Price Analysis: Portrays three-day downtrend to poke 1.2100 key support

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GBPUSD @ 1.21051 – Support/Resistance analysis: Price Analysis: Portrays three-day downtrend to poke 1.2100 key support

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• GBP/USD holds lower ground near one-week low, down for the third consecutive day.
• Convergence of 21-DMA, monthly support line challenges bears.
• Downward sloping resistance line from mid-June restricts immediate upside.

The pair currently trades last at 1.21051.

The previous day high was 1.2217 while the previous day low was 1.21. The daily 38.2% Fib levels comes at 1.2145, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.2172, expected to provide resistance.

GBP/USD bears keep reins for the third day in a row around the intraday bottom, down 0.22% intraday heading into Monday’s London open.

While a downward sloping resistance mile from mid-June triggered the GBP/USD reversal, a confluence of the 21-DMA and a one-month-old upward slopping support line, close to 1.2100, challenge the bears.

Given the recently easing bullish bias of the MACD, as well as descending RSI (14), GBP/USD is likely to extend the latest weakness beneath the 1.2100 key support level.

Following that, the 23.6% Fibonacci retracement level of the pair’s downside between late May to mid-July, around 1.1975, could offer an intermediate halt during the pair’s slump towards the yearly low near 1.1760.

Meanwhile, recovery moves may initially attack the 50% Fibonacci retracement level of 1.2215 ahead of challenging the stated resistance line from mid-June, close to 1.2260 at the latest.

In a case where the GBP/USD buyers manage to cross the 1.2260 hurdle, the monthly peak near 1.2295 and the mid-June swing high near 1.2410 could test the bulls before giving them control.

Trend: Further weakness expected

Technical Levels: Supports and Resistances

GBPUSD currently trading at 1.2112 at the time of writing. Pair opened at 1.2138 and is trading with a change of -0.21% % .

The pair is trading above its 20 Daily moving average @ 1.2099, below its 50 Daily moving average @ 1.2138 , below its 100 Daily moving average @ 1.2425 and below its 200 Daily moving average @ 1.2913

The previous day high was 1.2217 while the previous day low was 1.21. The daily 38.2% Fib levels comes at 1.2145, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.2172, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 1.2086, 1.2034, 1.1968
• Pivot resistance is noted at 1.2204, 1.227, 1.2322

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