GBP/USD Price Analysis: Glides inside symmetrical triangle, 1.3580 support remains critical
|- GBP/USD edges lower on Wednesday in the early Asian trading hours.
- The pair faces strong resistance near 1.3650 inside the symmetrical triangle.
- Downside needs validation below 1.3580, MACD holds in the oversold zone.
GBP/USD has continued to consolidate for the past few sessions with downside risk. The pair confides in a narrow trade band with small losses. At the time of writing, GBP/USD is trading at 1.3583, down 0.04% for the day.
GBP/USD daily chart
On the daily chart, after testing the high of 1.3913 on September 14, the GBP/USD pair lost momentum and continued with its existing short-term downside trend. Furthermore, the spot trades below the 21-day Simple Moving Average (SMA) at 1.3629 inside the symmetrical triangle formation, which confirms the pressured movement for the pair at least in the short term. Having said that, if the price breaks the intraday low, it could test the ascending trendline of the mentioned triangle at 1.3565, extending from the low of 1.3411.
The break of the bullish slopping line would further confirm the continuation of the downside momentum for the pair. GBP/USD bears shall look out for the 1.3500 horizontal support level followed by the October 1 low at 1.3433.
The Moving Average Convergence Divergence (MACD) indicator holds onto the oversold zone. This means that any uptick in the MACD could bring some upside momentum for the spot price. The bulls would approach the psychological 1.3600 level in that case. Next, the pair would be prompted to test the 21-SMA at 1.3629 followed by the 1.3650 horizontal resistance level.
GBP/USD additional levels
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