- GBP/USD trades 0.22% higher despite selling off in the US session.
- The price was heading higher but hit a brick wall at 1.2649.
GBP/USD 4-hour chart
Looking at the chart below it is clear to see that cable was on a good run till the US came to market. The risk sentiment started well but at about 3.30 pm London time the S&P started to sell-off. This then took GBP/USD lower too as the USD strengthened. On the 4-hour chart below the last candle is a bearish engulfing candle which could indicate lower prices ahead.
Below the current price levels, there are a few key support zones to keep an eye on. The first is the red line at 1.2527, the level has been used in the past on a few occasions and it could be important in the future. The 200 Simple Moving Average could also be a support zone and if you look left on the chart it has been used as both a support and resistance zone. Lastly, the blue trendline might also help stem the losses.
On the topside, if the bulls do regain control again the first hurdle will be the wave high at 1.2666. If the bulls do manage to break the zone then the high on the chart could be tested.
Looking at the technical indicator, the Relative Strength Index is still just above the 50 area. Any move below could indicate some bearishness is on the horizon. The MACD has just turned positive as the histogram is now green and the signal lines are about to cross the mid-point.
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Additional levels
