GBP/USD Price Analysis: Pokes fortnight-old hurdle below 1.2050 inside falling wedge

GBP/USD stays on the front foot inside a bullish chart pattern after rising the most in three weeks.
Immediate descending trend line challenge buyers ahead of the 1.2155-60 key resistance.
20-DMA adds strength to the upside barrier, sellers have a bumpy road to the south.

Anil Panchal FXStreet

GBP/USD buyers attack a two-week-old resistance line while extending the previous day’s run-up to Friday’s Asian session. That said, the Cable pair picks up bids to 1.2030 after rising the most in nearly three weeks. In doing so, the quote remains inside a two-month-long falling wedge bullish chart pattern.

Considering the quote’s rebound from the stated bullish formation’s support line, coupled with an improvement in the RSI (14), the latest rebound is expected to overcome the immediate hurdle surrounding 1.2030-35.

The same could propel the pair towards the wedge’s resistance line, also nearing the 20-DMA, around 1.2155-60 key hurdle.

Should the GBP/USD prices rally beyond 1.2160, it could confirm the theoretical run-up beyond 1.2800. However, the highs marked during mid-June and May, respectively around 1.2410 and 1.2665 could challenge the upside momentum.

On the contrary, pullback moves may take a breather near the 1.2000 psychological magnet before revisiting the recent multi-month low of 1.1876.

However, the lower line of the stated wedge, at 1.1861 by the press time, will challenge the GBP/USD bears afterward.

GBP/USD: Daily chart

Trend: Further recovery expected

Additional important levels

Overview
Today last price	1.2026
Today Daily Change	0.0098
Today Daily Change %	0.82%
Today daily open	1.1928

Trends
Daily SMA20	1.2194
Daily SMA50	1.2362
Daily SMA100	1.2756
Daily SMA200	1.3131

Levels
Previous Daily High	1.199
Previous Daily Low	1.1876
Previous Weekly High	1.2332
Previous Weekly Low	1.1976
Previous Monthly High	1.2617
Previous Monthly Low	1.1934
Daily Fibonacci 38.2%	1.1919
Daily Fibonacci 61.8%	1.1946
Daily Pivot Point S1	1.1873
Daily Pivot Point S2	1.1818
Daily Pivot Point S3	1.176
Daily Pivot Point R1	1.1987
Daily Pivot Point R2	1.2045
Daily Pivot Point R3	1.21

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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