GBP/USD Price Analysis: Stumbles below 1.2100 on buoyant US Dollar
|
- The Pound Sterling drops below 1.2000, set to finish the week with gains of more than 1.50%.
- GBP/USD: Failure to hold above 1.2100 exacerbated a fall toward the November 24 low of 1.2049.
- GBP/USD Price Analysis: A break below 1.2000 will exacerbate a fall towards 1.1800.
The GBP/USD hovers below 1.2100 amid a subdued trading session on low volume conditions spurred by the US Thanksgiving holiday, with the US equity market set to close on Friday, around 13:00 ET. Broad US Dollar (USD) strength spurred by a risk-off impulse caused a retracement on the GBP/USD. At the time of writing, the GBP/USD is trading at 1.2079, registering a minuscule loss of 0.27%.
GBP/USD Price Analysis: Technical outlook
From a daily chart perspective, the GBP/USD remains neutral-upward biased, though lacking the force to break above the 200-day Exponential Moving Average (EMA) around 1.2181. November’s monthly high of around 1.2153 was shy of piercing the latter. Therefore, the GBP/USD would be subject to selling pressure, opening the door for further downside.
The GBP/USD 4-hour chart suggests that the major appears to be topping around the 1.2150 area in the near term, failing to break above the August 17 daily high of 1.2142, exacerbating a drop below 1.2100. Also, the Relative Strength Index (RSI) exiting from overbought conditions after peaking around 1.2150, which could mean two things: traders booking profits after a fall towards multi-decade lows around 1.0300 towards 1.2000, and also some US Dollar (USD) short covering.
Therefore, the GBP/USD path of least resistance is downwards. GBP/USD first support would be the S1 daily pivot point at 1.2050. Break below will expose the 1.2000 figure, followed by the 50-Exponential Moving Average (EMA) at around 1.1931.
GBP/USD Key Technical Levels
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.