- 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.
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.
GBP/USD Key Technical Levels
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
