- RSI is Neutral near mid-level 50.
- MACD gives sell signals with fading histograms.
- The higher Low pattern is breached.
- Price hovering at 200 SMA
GBP/USD Technical Analysis
The Technical Analysis of the H4 chart of the GBP/USD currency pair shows that after reaching the 1.22000 level, the pair faced massive resistance. It was the point where GBP/USD lost its upside momentum. The break below the ascending trendline is also confirming this possibility. Right now, the price of GBP/USD is hovering near the 200 Period Simple Moving Average (SMA) at 1.20702, above the 38.2% Fibonacci retracement level. (calculated from the high of 1.22037 on 14th March to a low of 1.18027 on 8th March).
Any break above the 1.20800 level could revive the upside momentum in the currency pair, which will lead the prices towards the next resistance at the 1.21088 level. Any break above this level will mean the prices will regain rising pressure and reach above the psychological 1.22000 level.
However, the prices are still far beyond the 61.8% Fibonacci Retracement level of 1.19551. It indicates there is a possibility the price will revert to the downside. The downside bias remains solid for the currency pair GBP/USD in the H4 chart, as the Moving Average Convergence and Divergence (MACD) histograms have started to fade and lean towards the zero line. Furthermore, the higher high higher low pattern has also been breached. On the other hand, the Relative Strength Index (RSI) at the mid-level shows indecision in the market.
The prices of the GBP/USD forex pair might try to gain some of its previous losses. However, overall, the analysis shows that prices will have to fall to the 1.1951 level (61.8% Fibonacci Retracement) before they can strengthen their upside momentum again.
Daily Technical Levels
Pivot Point: 1.2086