GBP/USD Price Analysis: Bears tighten grips on the way to 1.1930
|- GBP/USD extends the previous day’s pullback from 21-DMA as MACD teases bears.
- Weekly low holds the key to further downside towards May’s bottom.
- Previous resistance line from April appears a tough nut to crack for bears.
- Two-month-old resistance line, 100-DMA adds to the upside filters.
GBP/USD holds lower ground near 1.2030, flirting with the intraday bottom, as bears seek fresh clues. Even so, the bearish MACD signals joins the cable pair’s failure to cross the 21-DMA hurdle to favor the downside momentum during Thursday’s European session.
That said, the weekly low around the 1.2000 round figure appears an immediate challenge for the sellers to tackle. Following that, a south-run towards May’s monthly low near 1.1930 can’t be ruled out.
It’s worth noting, however, that the quote’s weakness past 1.1930 seems to have limited downside room as the resistance-turned-support from April, at 1.1880 by the press time, will challenge the GBP/USD bears.
Should the quote drops below 1.1880, the odds of witnessing the fresh yearly low, currently around 1.1760, can’t be ruled out.
Alternatively, recovery remains elusive below the 21-DMA level of 1.2110. Even so, a two-month-old resistance line near 1.2260 could challenge the GBP/USD bulls.
If at all the Cable pair crosses the 1.2260 hurdle, the 100-DMA level of 1.2382 will be the last defense for the bears.
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.