GBP/USD Price Analysis: Poised for further downside towards 1.3800
|- GBP/USD edges lower around weekly bottom, stays directed to five-month-old support.
- 100-day EMA breakdown, bearish MACD favor sellers, bulls have a bumpy road below March top.
GBP/USD portrays a corrective pullback from the weekly low of around 1.3842 during the early Asian session on Wednesday. The cable pair dropped to the lowest in a week the previous to justify the early week breakdown of 100-day EMA, as well as bearish MACD.
With the latest bounce failing to defy the downside momentum, staying below the key EMA with mostly the same MACD conditions, GBP/USD remains on the sellers’ radar.
However, an upward sloping trend line from early February, around 1.3800, become the key nearby support to watch during the pair’s further weakness.
In a case where the GBP/USD bears keep reins past 1.3800, April’s low and 200-day EMA surrounding 1.3675-70 will be a tough nut to break for them.
Meanwhile, an upside break of 100-day EMA, near 1.3905 could aim for the 1.4000-4010 resistance area comprising multiple tops marked since mid-March.
During the quote’s sustained run-up beyond 1.4010, March’s top near 1.4020 and early June low close to 1.4080 may challenge GBP/USD bulls ahead of the yearly tops near 1.4245-50.
GBP/USD daily chart
Trend: Further weakness expected
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