GBP/USD Price Analysis: Bears bracing for a bumpy road to 1.3570
|- GBP/USD grinds lower around mid-October lows after three-day downtrend.
- Bearish MACD, sustained trading below 50-DMA favor sellers.
- Horizontal supports from August and July test immediate downside.
GBP/USD licks its wounds around 1.3620, the lowest level in three weeks as traders brace for the key Wednesday morning in Asia.
Although a clear downside break of 50-DMA and bearish MACD signals back the GBP/USD sellers, nearness to the key support zones and the RSI line’s proximity to the oversold area can put a floor under the prices.
That being said, a horizontal area comprising multiple lows marked since August 20, around 1.3600-3610 acts as an immediate challenge for the pair bears before targeting another support region surrounding 1.3575-70, stretched from July.
Should the quote refrain from bouncing off 1.3570, the 1.3500 threshold may offer an intermediate halt before dragging the quote to the yearly bottom close to 1.3410.
On the contrary, an upside clearance of 50-DMA level of 1.3710 isn’t a green pass to the GBP/USD buyers as the late September’s swing high close to 1.3750 and October’s peak of 1.3833 could challenge the bulls before giving them controls.
To sum up, GBP/USD remains weak but has strong supports on the downside to limit the short-term declines.
GBP/USD: Daily chart
Trend: Further weakness expected
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.