Blog: GBP/USD Price Analysis: 21-HMA rescues bulls after Brexit-news led 40-pips drop – FXStreet

  • GBP/USD reverses a quick drop to near the 21-HMA support.
  • However, the bears continue to the guard 1.3300 level.   
  • Fresh Brexit reports suggests UK has not moved on three key issues.

Having faced rejection once again below 1.3300, GBP/USD quickly eroded 40-pips from daily highs of 1.3287 after negative Brexit headlines.

Fresh reports hit the wires, citing the EU negotiating team, there is no breakthrough on Brexit talks, as the UK has failed to move its stance on fisheries, state aid and governance.

However, the 21-hourly moving average (HMA) support at 1.3250 came to the rescue of the GBP bulls, allowing a brief bounce to near 1.3265 region, as of writing.

As the spot recovery from session lows of 1.3249, the bulls recapture the 50-HMA at 1.3257.

The hourly Relative Strength Index (RSI), currently at 51.91, has turned higher, bouncing off from the midline. The rebound in the RSI keeps the buyers hopeful.

The cable now aims to regain the 1.3300 level once again should the daily high at 1.3287 give way. Next up, the confluence of the November 11 and November 18 highs at 1.3313 is the level to beat for the bulls.

If the recovery attempt loses steam, the 21-HMA support could be retested. Acceptance below the latter could expose the upward-sloping 100-HMA cushion at 1.3241.

Further south, the 200-HMA support at 1.3220 will emerge as a critical barrier for the bulls to defend.

GBP/USD: Hourly chart

GBP/USD: Additional levels

 

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