GBP/USD Price Analysis: Multiple bounces off 1.2000 tease buyers


  • GBP/USD picks up bids to portray the third U-turn from 1.2000.
  • RSI, MACD both suggest that bears are running out steam.
  • Bulls need validation from weekly resistance line, 200-HMA.

GBP/USD picks up bids to reverse the initial losses around 1.2030 heading into Wednesday’s London open. In doing so, the Cable pair marks the third rebound from the 1.2000 psychological magnet while probing the bearish bias portrayed on Tuesday.

Although one-week-old horizontal support near 1.2000 restricts the immediate downside of the GBP/USD pair, recovery remains elusive unless the quote crosses a downward-sloping resistance line from December 19, close to 1.2090 by the press time.

That said, the 1.2050 mark and the 100-HMA level surrounding 1.2070 restrict immediate recovery moves of the Cable pair.

It’s worth noting that the GBP/USD pair’s upside past 1.2070 will need validation from the 200-HMA hurdle, close to 1.2140 at the latest, a break of which could give control to the buyers.

Meanwhile, a clear downside break of the 1.2000 round figure precedes the monthly low of 1.1992 to restrict the short-term GBP/USD declines.

Following that, the late November swing low of 1.1900 will gain the market’s attention as the pair’s sustained trading below the same could put the sellers in the driver’s seat.

Overall, GBP/USD is likely to consolidate recent losses but the recovery remains doubtful below 1.2140.

GBP/USD: Hourly chart

Trend: Limited recovery expected

Additional important levels

Overview
Today last price 1.2026
Today Daily Change -0.0002
Today Daily Change % -0.02%
Today daily open 1.2028
 
Trends
Daily SMA20 1.2178
Daily SMA50 1.1858
Daily SMA100 1.1671
Daily SMA200 1.2063
 
Levels
Previous Daily High 1.2112
Previous Daily Low 1.2002
Previous Weekly High 1.2242
Previous Weekly Low 1.1992
Previous Monthly High 1.2154
Previous Monthly Low 1.1147
Daily Fibonacci 38.2% 1.2044
Daily Fibonacci 61.8% 1.207
Daily Pivot Point S1 1.1982
Daily Pivot Point S2 1.1937
Daily Pivot Point S3 1.1872
Daily Pivot Point R1 1.2092
Daily Pivot Point R2 1.2157
Daily Pivot Point R3 1.2202

 

 

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