GBP/USD technical analysis: On the back foot below short-term key resistance
|- GBP/USD holds below 10-day EMA, 23.6% Fibonacci retracement.
- 14-day old rising trend-line gains sellers attention.
GBP/USD stays under near-term key resistance-confluence as it takes the rounds to 1.2185 by early Friday's morning session in Asia.
In addition to the pair’s sustained trading below the 10-day exponential moving average (EMA) and 23.6% Fibonacci retracement level of June-August declines, a gradual softening of 12-bar moving average convergence and divergence (MACD) histogram also portrays the underlying weakness in price momentum.
With this, sellers eye an upward sloping trend-line since August 12, near 1.2130, as immediate support whereas 1.2100 and monthly low of 1.2015 can please them afterward.
Alternatively, an upside break of 1.2200 resistance-mark can propel prices to 38.2% Fibonacci retracement and the weekly high surrounding 1.2310.
It should, however, be noted that pair’s run-up beyond 1.2310 enables it to conquer 50-day EMA level of 1.2332 while July 17 low of 1.2382 likely gaining GBP/USD buyers’ attention then after.
GBP/USD daily chart
Trend: bearish
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