Chart Of The Day: Failure to sustain 61.8% Fibo break, overbought RSI favour GBPUSD's pullback towards 21/50-day EMA confluence on a key day
Be it the August month UK Retail Sales or the end of British Supreme Court hearing against the Prime Minister Boris Johnson's Parliament prorogation, not to forget BOE, it's an important day for the GBP/USD pair traders. As a result, the pair offers little moves ahead of the data/events while taking rounds to 61.8% Fibonacci retracement of June-September declines. Considering the pair's inability to sustain a break of key Fibo. level, coupled with overbought RSI, odds are increasing for a fresh decline towards 50% Fibonacci retracement level of 1.2370. However, confluence of 50 and 21-day EMA around 1.2325/40 could restrict the pair's further declines.
On the upside, a sustained rise beyond recent peak near 1.2530 can escalate the pair's north-run towards July-12 high around 1.2580 and then to 1.2600 round-figure. It should also be noted that 1.2655 holds the key to pair's rally to June month top close to 1.2780.