GBP/USD Price Analysis: 200-SMA, monthly support test bears post-Fed
|- GBP/USD remains on the back foot around short-term critical supports.
- Downbeat MACD lines, failure to keep the bounce off one-month-old horizontal support area favor bears.
- Bulls need to cross fortnight-old resistance line to retake control.
GBP/USD battles key supports as sellers poke 1.3460 during early Thursday.
The cable pair broke the 200-SMA following the US Federal Reserve’s (Fed) hawkish verdicts. However, clear trading beneath the same becomes necessary to convince the bears.
Other than the sustained trading below the 200-SMA level of 1.3478, GBP/USD sellers also need to conquer the horizontal area from December 23, around 1.3435-30, to stay in the driver’s seat.
Given the bearish MACD signals and the pair’s latest pullback, GBP/USD prices are likely to conquer the aforementioned supports, which in turn will direct the quote towards 61.8% Fibonacci retracement of December 2021 to January 2022 upside, around 1.3385.
Following that, the mid-December high near 1.3375 can act as a validation point to the south-run targeting the 1.3300 threshold.
Alternatively, recovery moves need to stay beyond the 200-SMA level of 1.3478 to challenge the 38.2% Fibo. level near 1.3525.
Though, GBP/USD bulls remain unconvinced till the quote stays below a two-week-long descending trend line, around 1.3575 by the press time.
GBP/USD: Four-hour chart
Trend: Further weakness expected
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