GBP/USD Price Analysis: Stays defensive above monthly support near 1.2000

GBP/USD struggles to keep the bounce off one-month-old ascending support line.
Sustained downside break of 200-SMA, downbeat RSI conditions keep sellers hopeful.
The 1.2080 resistance confluence restricts immediate recovery moves.

Anil Panchal FXStreet

GBP/USD stays defensive around 1.2030, fading the bounce off the monthly support line, as bears await fresh clues to retake control during early Wednesday.

That said, an upward-sloping support line from November 30, around the 1.2000 psychological magnet by the press time, restricts the Cable pair’s short-term downside.

However, the latest successful break of the 200-SMA joins the downbeat RSI (14), not oversold, to keep bears hopeful of conquering the stated support and retaking control.

Following that, the monthly low of 1.1990 and the late November bottom surrounding 1.1900 could lure the GBP/USD sellers. Though, the 50% and 61.8% Fibonacci retracement levels of the pair’s November-December run-up, respectively near 1.1800 and 1.1645, could challenge the quote’s further declines.

It’s worth noting that the late October swing high adds strength to the 1.1645 support level.

Alternatively, a convergence of the 200-SMA and one-week-old descending trend line highlights the 1.2080 level as the key hurdle for the GBP/USD bulls.

In a case where the Cable buyers keep the reins past 1.2080, the previous weekly top near 1.2245 and the early December top close to 1.2345 could probe the upside momentum before highlighting the monthly peak of 1.2445 as the target for the GBP/USD bulls.

GBP/USD: Four-hour chart

Trend: Further downside expected

Additional important levels

Overview
Today last price	1.2028
Today Daily Change	-0.0018
Today Daily Change %	-0.15%
Today daily open	1.2046

Trends
Daily SMA20	1.2174
Daily SMA50	1.1844
Daily SMA100	1.1672
Daily SMA200	1.2069

Levels
Previous Daily High	1.2046
Previous Daily Low	1.2046
Previous Weekly High	1.2242
Previous Weekly Low	1.1992
Previous Monthly High	1.2154
Previous Monthly Low	1.1147
Daily Fibonacci 38.2%	1.2046
Daily Fibonacci 61.8%	1.2046
Daily Pivot Point S1	1.2046
Daily Pivot Point S2	1.2046
Daily Pivot Point S3	1.2046
Daily Pivot Point R1	1.2046
Daily Pivot Point R2	1.2046
Daily Pivot Point R3	1.2046

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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