The GBPUSD currency pair is recovering slowly at its lowest point in three months, as it consolidates the losses it incurred from the 78.6% Fibonacci ratio. According to the viewpoint of analyst @nehcap, there is only expected to be a minor improvement in the currency’s value.

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• GBP/USD licks its wounds at three-month low, consolidating recent losses from 78.6% Fibonacci ratio.

The pair currently trades last at 1.24980.

The previous day high was 1.2632 while the previous day low was 1.2528. The daily 38.2% Fib levels comes at 1.2568, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.2592, expected to provide resistance.

GBP/USD portrays a corrective bounce off a three-month low to around 1.2500 amid early Thursday morning in Asia. In doing so, the Cable pair justifies the oversold RSI conditions, as well as the Pound Sterling’s sustained rebound from the 78.6% Fibonacci retracement of late May to mid-March upside, near 1.2485.

Even so, the bearish MACD signals and the support-turned-resistance stretched from early August guard immediate recovery of the Pound Sterling pair around 1.2530.

Following that, a one-week-old descending resistance line surrounding 1.2580 will precede the 200-SMA hurdle of around 1.2720 to act as the final defense of the GBP/USD pair sellers.

Alternatively, a daily closing beneath the 78.6% Fibonacci retracement level of 1.2485 could quickly drag the GBP/USD pair’s low marked in June around 1.2370, a break of which will direct the Cable bears toward the yearly low marked in March around 1.1800.

That said, the 1.2000 psychological magnet acts as the intermediate halt between 1.2370 and 1.1800.

Overall, the GBP/USD pair is likely to witness a corrective bounce but the room towards the north is long and bumpy.

On a fundamental side, comparatively more hawkish Federal Reserve (Fed) talks than their Bank of England (BoE) counterparts keep exerting downside pressure on the GBP/USD despite the latest corrective bounce.

Trend: Limited recovery expected

Technical Levels: Supports and Resistances

GBPUSD currently trading at 1.2501 at the time of writing. Pair opened at 1.2564 and is trading with a change of -0.50% % .

The pair is trading below its 20 Daily moving average @ 1.2675, below its 50 Daily moving average @ 1.2771 , below its 100 Daily moving average @ 1.2654 and above its 200 Daily moving average @ 1.2422

The previous day high was 1.2632 while the previous day low was 1.2528. The daily 38.2% Fib levels comes at 1.2568, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.2592, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 1.2518, 1.2471, 1.2414
• Pivot resistance is noted at 1.2621, 1.2678, 1.2725

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