FX.co ★ Technical analysis of GBP/USD for February 13, 2023

The GBP/USD pair faced resistance at the level of 1.2188, while minor resistance is seen at 1.2135. Support is found at the levels of 1.2068 and 1.1960. Pivot point has already been set at the level of 1.2135. Equally important, the GBP/USD pair is still moving around the key level at 1.2135, which represents a minor resistance in the H1 time frame at the moment. The GBP/USD pair continued moving downwards from the level of 1.2188. The pair will to the bottom around 1.1960 from the level of 1.2188 (coincides with the ratio of 50% Fibonacci retracement). In consequence, the GBP/USD pair broke support, which turned into strong resistance at the level of 1.2188. The level of 1.2188 is expected to act as the major resistance today. We expect the GBP/USD pair to continue moving in the bearish trend towards the target levels of 1.2068 and 1.1960.

If the pair fails to pass through the level of 1.2188, the market will indicate a bearish opportunity below the level of 1.2188. Moreover, a breakout of that target will move the pair further downwards to 1.1960 in order to form a new double bottom. So, the market will decline further to 1.2068 and 1.1960. On the other hand, if a breakout happens at the support level of 1.2242, then this scenario may be invalidated.

Review :

The GBP/USD pair traded in different directions in the range of 1.2188 - 1.1960 and closed the day without significant changes. Today it fell a little, dropping from the top price of 1.2188 to 1.2135. The GBP/USD pair stayed below the psychological level of 1.2188 over the weekend, indicating a lack of urgency to accumulate at the current levels. The bears are attempting to extend the GBP/USD pair's decline below 1.2188 in the week beginning of this week. Following the price of 1.2188 rejection, the seller takers still have the upper hand in the market, as they were able to impose more correction on the GBP/USD pair from the price of 1.2188.

The GBP/USD pair couldn't reach stiff resistance at 1.2188 and pulled back near 1.2068 support, which could be a swing entry opportunity. On the hourly chart, the EUR/USD pair is still trading below the MA (100) H1 moving average line (1.2188). The situation is similar on the one-hour chart. Based on the foregoing, it is probably worth sticking to the north direction in trading, and as long as the GBP/USD pair remains below MA 100 H1, it may be necessary to look for entry points to buy for the formation of a correction.

The GBP/USD pair slides below 1.2188 mark amid rebounding oil prices, modest USD weakness. The GBP/USD pair maintained its offered tone through the early London session and slipped below the 1.2188 psychological mark, hitting a fresh daily low in the last three hour at the price of 1.1960. The RSI is still signaling that the trend is downward as it is still strong below the moving average (100). Additionally, the RSI starts signaling a downward trend.