US DOLLAR SHOWING SIGNS OF WEAKNESS
GBP/USD Technical Analysis
The British Pound found support near 1.2550 and 1.2560 against the US Dollar, and started a fresh recovery this past week. The GBP/USD pair traded above the 1.2600 and 1.2650 resistance levels to move into a positive zone.
The pair even broke the 1.2700 resistance and the 50 hourly simple moving average. The bulls gained momentum above 1.2720 and a new swing high was formed near 1.2762 on FXOpen.
At the moment, the pair is correcting lower and it recently broke the 1.2750 level and the 50% Fib retracement level of the last wave from the 1.2686 low to 1.2762 high.
On the downside, there are many supports near the 1.2720 and 1.2700 levels. There is also a major bullish trend line forming with support near 1.2710 on the hourly chart of GBP/USD.
Moreover, the 61.8% Fib retracement level of the last wave from the 1.2686 low to 1.2762 high is likely to act as a strong support near 1.2720.
Therefore, if there is a downside correction, the pair could find support near the 1.2720 and 1.2700 levels. Only a close below 1.2700 and the 50 hourly SMA could push the pair back in a negative zone in the near term.
On the upside, an initial resistance is at 1.2750, above which the bulls could target 1.2780 or even 1.2800.