GBP/USD Price Analysis: Corrective pullback needs validation from 1.3180
|- GBP/USD licks its wounds near the lowest levels since November 2020.
- Oversold RSI conditions probe further downside, multiple levels marked since October 2020 guard recovery moves.
GBP/USD seesaws around 1.3120, up 0.12% intraday after refreshing the 16-month low with a small downtick in early Asian session during Tuesday.
Although the oversold RSI conditions seem to have triggered the cable pair’s latest rebound, the previous support line from October 2020, around 1.3170-80, restricts the quote’s further upside.
Even if the GBP/USD prices cross the 1.3180 immediate hurdle, a convergence of the 10-DMA and a descending trend line from February’s peak will challenge the pair’s advances around 1.3330.
Alternatively, a clear downside break of the 1.3100 becomes necessary to send fresh invitations to GBP/USD bears.
Following that, 78.6% Fibonacci retracement (Fibo.) of September 2020 to February 2021 upside, near the 1.3010, as well as the 1.3000 psychological magnet, will be in focus.
Overall, GBP/USD remains on the bear’s radar despite the latest corrective pullback.
GBP/USD: Daily chart
Trend: Further weakness expected
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