GBP/USD breaks to a new wave low at the end of the week on the 4-hour chart

  • GBP/USD dropped 0.64% on Friday after underperforming for the session.
  • The price could find some support soon as there is a decent level close to the current price level.

GBP/USD 4-hour chart

GBP/USD has pushed lower on Friday to end the week on a negative note. The price has just printed below the previous wave low and this will be the third weekly bearish close in a row unless there is some miracle before the US close.

Just below 1.23, there is a support level that could stem the losses. If the price breaks beyond that then there could be a further capitulation toward the main support low on the chart of 1.2086.

 

The Relative Strength Index looks to be setting up for a potential bearish divergence. This is when the market makes a lower low wave and the indicator makes a higher low. As GBP is such a risk-sensitive currency the Chinese manufacturing PMI data could have a big impact along with the NFP data at the end of the week.

GBP/USD Technical Analysis

Additional levels

GBP/USD
OVERVIEW Today last price 1.2342 Today Daily Change -0.0077 Today Daily Change % -0.62 Today daily open 1.2419
 
TRENDS Daily SMA20 1.2545 Daily SMA50 1.2419 Daily SMA100 1.249 Daily SMA200 1.2692
 
LEVELS Previous Daily High 1.2464 Previous Daily Low 1.2389 Previous Weekly High 1.2688 Previous Weekly Low 1.2344 Previous Monthly High 1.2601 Previous Monthly Low 1.2076 Daily Fibonacci 38.2% 1.2436 Daily Fibonacci 61.8% 1.2418 Daily Pivot Point S1 1.2384 Daily Pivot Point S2 1.2349 Daily Pivot Point S3 1.2308 Daily Pivot Point R1 1.2459 Daily Pivot Point R2 1.25 Daily Pivot Point R3 1.2535