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- GBP/USD extends its gains to two straight weeks, gains some 1.49%.
- From a daily chart perspective, the GBP/USD is still downward biased, facing solid resistance around 1.2200.
- GBP/USD Price Analysis: Unless buyers reclaim 1.2245, the pair remains tilted downwards.
The British pound finished the week on the right foot and recorded its second consecutive week in the green; it printed solid gains of 1.49%, amidst an upbeat market mood, portrayed by US equities closing higher on Friday. In the FX space, the GBP/USD is trading at 1.2170, 0.05% down, during the North American session.
GBP/USD Price Analysis: Technical outlook
The GBP/USD is still neutral-to-downward biased, trapped within the 50 and 20-day EMAs, as depicted by the daily chart. Worth noting that earlier in the European session, GBP/USD buyers broke above the 50-day EMA but could not hold the fort, and the pound tumbled towards and hit its daily low at 1.2062 before rebounding towards current price levels.
If GBP/USD buyers want to regain control, they must reclaim 1.2300; otherwise, sellers remain in charge.
GBP/USD 1-hour chart
In the near term, the GBP/USD is neutral-upwards biased. Since July 14, after reaching a daily low at 1.1759, the major began trending higher, within a 200-pip width ascending channel, which put a lid on Friday’s rally around 1.2245, right at the top of the channel. Even though the GBP/USD plunged towards 1.2065, the S1 pivot point cable recovered some ground and is trading above the confluence of all the hourly EMAs and the daily pivot.
Therefore, the GBP/USD first resistance would be the R1 daily pivot at 1.2210. Break above will expose the top-trendline of the ascending channel around 1.2245, followed by the 1.2300 figure. On the flip side, if the GBP/USD falls below the ascending channel mid-line around 1.2150, it will send the pair sliding towards the bottom-trendline of the channel at around 1.2050-60.
