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Stumbles below 1.2100 on buoyant US Dollar

by ForexGuy
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  • The pound remains below 1.2000 and is expected to end the week gaining more than 1.50%.
  • GBP/USD: Failure to sustain above 1.2100 exacerbated the fall to Nov. 24 lows of 1.2049.
  • GBP/USD Price Analysis: Below 1.2000 will accelerate the fall to 1.1800.

GBP/USD remains below 1.2100 amid a sluggish trading session amid low volumes fueled by the US Thanksgiving holiday. Broad US dollar (USD) strength, fueled by risk-off impulses, triggered a GBP/USD retracement. At the time of writing, GBP/USD he is trading at 1.2079, recording a small loss of 0.27%.

GBP/USD Price Analysis: Technical Outlook

From a daily chart perspective, GBP/USD lacks strength above the 200-day exponential moving average (EMA) near 1.2181, but remains in a neutral upward bias. November’s monthly high of around 1.2153 fell short of the latter. GBP/USD is therefore under selling pressure and may fall further.

GBP/USD 4-hour chart looks like the major currency is topping out near 1.2150 in the short-term, failing to surpass the August 17 high of 1.2142, exacerbating a drop below 1.2100 suggests that Also, the Relative Strength Index (RSI) has broken out of the overbought state after peaking around 1.2150. This can mean two things. Traders are securing profits after falling from around 1.0300 towards multi-decade lows towards 1.2000. There is also a US dollar (USD) short cover. .

Therefore, the GBP/USD path with the least resistance is downwards. GBP/USD’s first support comes at S1’s daily pivot point of 1.2050. The break below reveals a figure of 1.2000 followed by a 50 exponential moving average (EMA) of around 1.1931.

GBP/USD Key Technical Levels

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