GBP/USD technical analysis: Choppy between 1.2385/80, 200-day EMA

• GBP/USD stays below 50% Fibonacci retracement of May-September downpour.
• 200-day EMA offers additional upside barriers while 1.2385/80 limits near-term downside.

With another pullback from 50% Fibonacci retracement, GBP/USD drops to 1.2470 ahead of the UK open on Monday.

The pair now aims to revisit 38.2% Fibonacci retracement level of 1.2425. Though, 1.2385/80 horizontal-line comprising July 17 low and September 09 high could restrict further declines.

Should there be additional downside below 1.2380, August month high near 1.2310 and 23.6% Fibonacci retracement level near 1 .2250 could please bears.

Meanwhile, 50% Fibonacci retracement level of 1.2570 can act as an immediate resistance, a break of which could escalate the recovery towards 200-day exponential moving average (EMA) around 1.2660 now.

It should, however, be noted that pair’s successful run-up beyond 1.2660 enables buyers to target June month high nearing 1.2785, adjacent to late-May top close to 1.2815.

GBP/USD daily chart

Trend: sideways