GBP/USD Rebound Could Face Strong Resistance

Key Highlights

  • The British pound found support near 1.2980 and recently recovered against the US dollar.
  • A major bearish trend line is in place with resistance at 1.3190 on the 4-hour chart of GBP/USD.

GBP/USD Technical Analysis

Looking at the 4-hour chart, the pair traded as low as 1.2977 and later rebounded above the 1.3050 resistance. Buyers even pushed the price above the 1.3100 level and cable tested the 50% Fib retracement level of the last decline from the 1.3269 high to 1.2977 low.

To the topside, there are many resistances for buyers, starting with the 200 simple moving average (4-hours, green) and 1.3125. The next key resistance is near 1.3160 and the 100 simple moving average (4-hours, red). Besides, the 61.8% Fibonacci retracement level of the last decline from the 1.3269 high to 1.2977 low is also near the 1.3160 level.

There is also a major bearish trend line in place with resistance at 1.3190 on the same chart. Therefore, if the pair continues to rise, it is likely to face a strong resistance near 1.3160, 1.3190 and 1.3200. A successful close above 1.3200 might push the pair back in a bullish zone.

Conversely, a failure to clear the 1.3160 or 1.3190 resistance could trigger a fresh decline below 1.3050.

GBP/USD, 4 Hour

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