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GBP/USD Price Analysis: Retreats from the daily highs, steadily around 1.2080

  • GBP/USD trims a few of last Fridays losses but remains trapped between your 20 and 50-DMA.
  • The daily chart depicts the pair trending between a descending channel as sellers eye the 20-day EMA.
  • The GBP/USD 4-hour scale depicts the pair as neutral-downward biased and may test the 1.2000 figure, short-term.

The GBP/USD records minimal gains after hitting an everyday high at 1.2137, shy of the 50-day EMA at 1.2166, which includes shown to be solid resistance within the last four days. However, the British pound retreated under 1.2100 but remained above the opening price, recording gains of 0.12%. During writing, the GBP/USD is trading at 1.2081.

GBP/USD Price Analysis: Technical outlook

The GBP/USD daily chart illustrates the major as neutral-to-downward biased. Further confirmation of the earlier mentioned is that sellers are gathering momentum, as shown by the Relative Strength Index (RSI), aiming lower, residing below the 50-midline. Also, the major trades inside a descending channel and the location price is 50 pips shy of the 20-day EMA at 1.2039. Once cleared, it could exacerbate a fall towards underneath of the channel, close to the YTD low at 1.1759.

GBP/USD Daily chart

Meanwhile, the GBP/USD 4-hour chart implies that an ascending channel was broken to the downside last Friday, adding further selling strain on the pair. Worth noting that GBP/USD buyers lifted the pair from the confluence of the 100 and 200-EMAs, close to the 1.2040s lows of your day. However, sellers piling round the 20-EMA at 1.2113 weighed on the pair, which slid below the 1.2100 mark.

Hence, the GBP/USD 4-hour chart continues to be neutral-to-downward biased. Therefore, the GBP/USD first support will be the confluence of the 100 and 200-EMA around 1.2065-68. The break below will send the pair tumbling towards the S1 pivot at 1.1990, accompanied by the S2 at 1.1910.

GBP/USD 4-hour chart

GBP/USD Key Technical Levels

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