GBP/USD Could Recover Sharply If It Clears 1.2250

Looking at the 4-hours chart, the pair traded as high as 1.2296 before it started a downside correction. There was a break below the key 1.2250 support zone and the pair remained well below the 100 simple moving average (red, 4-hours) and the 200 simple moving average (green, 4-hours).

There was a break below the 50% Fib retracement level of the upward move from the 1.2075 low to 1.2296 high. However, the decline was protected by the 1.2160 support zone.

The pair also remained stable above the 61.8% Fib retracement level of the upward move from the 1.2075 low to 1.2296 high. It is showing recovery signs, but also facing many hurdles near 1.2220 and 1.2250.

There is also a key bearish trend line forming with resistance near 1.2210 on the same chart. A clear break and close above 1.2220 and 1.2250 might start a strong recovery wave in the near term.

Conversely, could fail to continue higher and it might slide further below the 1.2160 support. The next major support is seen near the 1.2100 level.

GBP/USD Chart
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

(Visited 2 times, 1 visits today)