GBP/USD rejected at 4-hr 200-MA

The GBP/USD pair failed to hold above the 4-hr 200-MA level of 1.2349 despite signs of exhaustion in the dollar’s bullish momentum.

Trades lower for sixth straight session

The spot is extending the five-day losing streak in Asia as the growing monetary policy divergence continues to support the American dollar. However, the two-week rally in the US dollar has been the best since 1998.

Consequently, the doors are open for a technical correction. The data docket is thinner today; hence the focus remains on the Treasury yields, which at the time of writing were trading flat to positive.

GBP/USD Technical Levels

The spot was last seen trading around 1.2335. A break below 1.2309 (61.8% of 1.2083-1.2674) would open doors for 1.2273 (Oct 27 high) and 1.2222 (76.4% of 1.2083-1.2674). On the higher side, a breach of resistance at 1.2378 (50% Fibo) would expose 1.2405 (5-DMA) and 1.2447 (10-DMA).