GBP/USD Rebound Could Face Hurdles
Titan FX | Feb 11, 2019 09:37PM ET
- The British pound declined heavily and broke the 1.3040 support area against the U.S. dollar.
- Two bearish trend lines formed with resistance at 1.2970 and 1.3025 on the 4-hour chart of GBP/USD.
Looking at the 4-hours chart, the pair settled below the 1.3000 support and the 100 (red) simple moving average (4-hours), opening the doors for more losses in the near term. The pair tested the 1.2850 support area, where buyers emerged.
Later, there was an upside correction above the 1.2925 level and the 23.6% Fibonacci retracement level of the recent decline from the 1.3160 high to 1.2854 low.
However, the pair faced a strong resistance near the 1.3000 level and the 38.2% Fib retracement level of the recent decline from the 1.3160 high to 1.2854 low. Moreover, there are two bearish trend lines formed with resistance at 1.2970 and 1.3025 on the same chart.
A successful close above the 1.3000 and 1.3025 resistance is needed for the pair to move back in the positive zone. If not, there is a risk of a downside move towards the 1.2850 and 1.2800 supports.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.