Market Analysis: GBP/USD Under PressureMarket Analysis: GBP/USD Under Pressure
GBP/USD started a fresh decline below the 1.2320 zone.
Important Takeaways for GBP/USD Analysis Today
- The British Pound started another decline from the 1.2320 resistance zone.
- There is a short-term bearish trend line forming with resistance at 1.2205 on the hourly chart of GBP/USD at FXOpen.
GBP/USD Technical Analysis
On the hourly chart of GBP/USD at FXOpen, the pair struggled to continue higher above the 1.2320 resistance zone. The British Pound started a fresh decline and traded below the 1.2270 support zone against the US Dollar, as discussed in the previous analysis.
The pair even traded below 1.2250 and the 50-hour simple moving average. Finally, the bulls appeared near the 1.2100 level. The recent swing low was formed at 1.2160 and the pair is now consolidating losses.
Immediate resistance on the upside is near a short-term bearish trend line at 1.2205. The first major resistance is near the 1.2230 zone and the 50% Fib retracement level of the downward move from the 1.2305 swing high to the 1.2160 low.
The main hurdle sits at 1.2270 and the 76.4% Fib retracement level of the downward move from the 1.2305 swing high to the 1.2160 low. A close above the 1.2270 resistance might spark a steady upward move.
The next major resistance is near the 1.2305 zone. Any more gains could lead the pair toward the 1.2320 resistance in the near term.
Initial support on the GBP/USD chart sits at 1.2160. The next major support sits at 1.2140, below which there is a risk of another sharp decline. In the stated case, the pair could drop toward 1.2100.
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