GBP/USD Price Analysis: Keeps pullback from 50-DMA near 1.1300
|- GBP/USD reverses from one-week high as sellers approach 21-DMA, monthly support line.
- Bullish MACD signals, firmer RSI (14) keeps buyers hopeful.
- One-month-old horizontal support adds to the downside filters.
GBP/USD stays defensive around a one-month-long support line, after reversing from the highest levels in a week, to 1.1300 during early Monday morning in Europe.
In doing so, the Cable pair reverses from the 50-DMA while declining back towards an upward-sloping support line from September 28.
Given the bullish MACD signals and the steady RSI, the GBP/USD prices are likely to remain firmer unless breaking the aforementioned immediate support line surrounding 1.1230.
Even if the quote drops below 1.1260 support, the 21-DMA level near 1.1155 and the one-month-old horizontal support near 1.0935 could challenge the GBP/USD bears.
It should be noted that a clear downside break of 1.0935 won’t hesitate to challenge the record low of 1.0339. However, the 1.0650 and 1.0540 levels may offer intermediate halts during the fall.
Alternatively, a clear upside break of the 50-DMA hurdle surrounding 1.1415 could push the GBP/USD buyers toward the monthly high near 1.1490.
Following that, the 61.8% Fibonacci retracement level of the pair’s August-September declines and September’s peak, close to 1.1545 and 1.1740 in that order, will act as extra barriers to the north for the GBP/USD pair buyers to watch.
GBP/USD: Daily chart
Trend: Recovery expected
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.