GBP/USD Price Analysis: Bounces off 11-week-old support but not out of the woods
|- GBP/USD struggles to keep the bounce off five-week low.
- Bearish MACD signals, sustained trading below short-term key supports favor sellers.
- Fortnight-old resistance line, 21-DMA challenge immediate upside moves.
GBP/USD fades the corrective pullback from a horizontal area established since early November, retreating to 1.3380 amid Friday’s Asian session.
The cable pair dropped during the last two trading sessions before the bears took a breather around the five-week low of 1.3357.
That said, the rebound struggles around the 61.8% Fibonacci retracement (Fibo.) level of December-January upside, near 1.3390, of late.
In addition to the immediate Fibo. resistance, the 50-DMA and a descending trend line from January 14, respectively around 1.3420 and 1.3470, act to challenge the GBP/USD buyers.
It’s worth noting that bearish MACD signals and downbeat RSI conditions, not oversold, are in favor of the GBP/USD sellers.
As a result, the fresh selling may wait for a clear downside break of the aforementioned horizontal support stretched from November 11, around 1.3350-60.
Following that, 1.3280 may act as a buffer during the GBP/USD south-run targeting December’s low near 1.3160.
GBP/USD: Daily chart
Trend: Further weakness expected
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