GBP/USD Price Analysis: Stumbles Below 1.2100 on USD Rise

- Advertisement -
  • The British pound falls below 1.2000 and ends the week with gains of more than 1.50%.
  • GBP/USD: The failure to hold above 1.2100 aggravated the decline towards the November 24 low at 1.2049.
  • GBP/USD Price Analysis: A break below 1.2000 will compound the decline towards 1.1800.

The pair GBP/USD remains below 1.2100 amid a muted trading session for the US Thanksgiving holiday, with the US stock market set to close on Friday around 1:00 p.m. ET. The strength of the US dollar, spurred by a risk aversion momentum, triggered a pullback in GBP/USD. At the time of writing, GBP/USD is trading at 1.2079, posting a minuscule 0.27% loss.

GBP/USD Price Analysis: Technical Perspective

From a daily chart standpoint, GBP/USD continues to have a neutral bias to the upside, although it lacks the strength to break above the 200 day EMA around 1.2181. The monthly maximum of November, around 1.2153, did not manage to pierce the latter. Therefore, the GBP/USD would be under selling pressure, which would open the door for further falls.

- Advertisement -

The GBP/USD 4 hour chart suggests that the major currency seems to top out around the 1.2150 zone in the short term, failing to break above the 17th August daily high of 1.2142, which would exacerbate the fall. below 1.2100. Additionally, the RSI is emerging from overbought conditions after hitting a high around 1.2150, which could mean two things: traders are booking profits after a slide to multi-decade lows around 1.0300 towards 1.2000, and also some short covering moves in the US dollar (USD).

Therefore, the path of least resistance for GBP/USD is down. The first support for GBP/USD would be the daily S1 pivot point at 1.2050. A break below will expose 1.2000, followed by the EMA around 1.1931.

- Advertisement -

GBP/USD Key Technical Levels

GBP/USD

Overview
Last price today 1.2083
today’s daily change -0.0037
today’s daily change -0.31
today’s daily opening 1,212
Trends
daily SMA20 1.1682
daily SMA50 1.1404
daily SMA100 1.1644
daily SMA200 1.2192
levels
previous daily high 1.2154
previous daily low 1.2048
Previous Weekly High 1.2029
previous weekly low 1,171
Previous Monthly High 1.1646
Previous monthly minimum 1.0924
Daily Fibonacci of 38.2%. 1.2113
Daily Fibonacci of 61.8% 1.2088
Daily Pivot Point S1 1,206
Daily Pivot Point S2 1.2001
Daily Pivot Point S3 1.1954
Daily Pivot Point R1 1.2166
Daily Pivot Point R2 1.2213
Daily Pivot Point R3 1.2272

Source: Fx Street

- Advertisement -

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Hot Topics

Related Articles