GBP/USD Price Analysis: Again fails to keep 100-day SMA breakout
- GBP/USD remains depressed after taking a U-turn from 1.2490.
- Two-week-old resistance-turned support could restrict immediate downside.
- Bulls will have to cross June 24 top to confirm further advances.
GBP/USD eases from 1.2490 to currently around 1.2465 during the initial hour of Tokyo open on Thursday. The cable takes a U-turn from one-week-old to defy its previous day’s break of 100-day SMA, which becomes frequent since the mid-June.
As a result, sellers are jostling with a 100-day SMA level around 1.2460 to revisit the falling trend line from June 16, at 1.2400 now.
It should, however, be noted that the pair’s further weakness past-1.2400 will be confined by an upward sloping trend line from May 18 and 38.2% Fibonacci retracement of March-June upside, near 1.2275/70.
Alternatively, a 23.6% Fibonacci retracement level of 1.2485 can offer immediate resistance ahead of 1.2500 and June 24 top near 1.2545.
Given the pair’s ability to cross 1.2545, it can rise towards 1.2690 and the previous month’s top of 1.2813.
GBP/USD daily chart
Trend: Pullback expected
Reprinted from FXStreet,the copyright all reserved by the original author.
Disclaimer: The content above represents only the views of the author or guest. It does not represent any views or positions of FOLLOWME and does not mean that FOLLOWME agrees with its statement or description, nor does it constitute any investment advice. For all actions taken by visitors based on information provided by the FOLLOWME community, the community does not assume any form of liability unless otherwise expressly promised in writing.
FOLLOWME Trading Community Website: https://www.followme.com
Hot
No comment on record. Start new comment.