GBP/USD Price Analysis: Bears attack 1.3800 on the break of 11-week-old support line
|- GBP/USD takes offers near intraday low, drops for the fifth day in a row.
- Bearish MACD, break of short-term key support line favor sellers.
- 50-day SMA offers immediate support, monthly top adds to the upside barriers.
GBP/USD refreshes intraday low with 1.3802, currently around 1.3810, during its fifth day of declines on Tuesday.
The cable recently broke an ascending support line, now resistance, from late December while bearish MACD signals exert additional downside pressure on the quote.
As a result, the GBP/USD sellers seem currently targeting the 50-day SMA level of 1.3766 ahead of the key support line from November 2020, at 1.3730 now.
Meanwhile, a corrective pullback beyond the previous support line of 1.3840 can cross the 1.3900 threshold but the monthly peak surrounding 1.4020 will be a tough nut to break afterward.
In a case where GBP/USD bulls manage to cross 1.4020, the multi-month high flashed in February around 1.4240-45 should return to the chart.
Overall, GBP/USD is ready to test the key support line while a break of which should reverse the uptrend from September 2020.
GBP/USD daily chart
Trend: Further weakness expected
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