GBP/USD technical analysis: 4H 100MA, 1.5-month old resistance-line to challenge recovery
- GBP/USD pulls back from three-week-old support-line, 4H 100MA and 23.6% Fibonacci retracement level.
- 4H 200MA and downward sloping trend-line since July 18 question the upside momentum.
GBP/USD’s recent bounce off key short-term supports is less likely to help the quote rise further as the key resistances stand tall to challenge upside momentum while the pair trades near 1.2162 ahead of Monday’s UK market open.
Among them, 200-bar moving average on the four-hour chart (4H 200MA) near 1.2225 and more than a month-old descending trend-line at 1.2280 will appear first to limit the increase.
Should there be further upside past-1.2280, late-August high near 1.2310 and 61.8% Fibonacci retracement of July-August declines, at 1.2365 can please buyers afterward.
On the downside, 4H 100MA, 23.6% Fibonacci retracement and three-week-old rising trend-line together constitute 1.2140/55 as the key support-zone, a break of which can quickly fetch the quote to August 20 low near 1.2065 whereas 1.2015 will entertain bears then after.
GBP/USD 4-hour chart
Trend: bearish
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.
