GBP/USD Price Analysis: Sellers attack 1.3800 inside short-term rising channel
|- GBP/USD refreshes intraday low during a three-day downtrend.
- Ascending trend channel from July 02 tests the bears.
- Bulls need to cross 1.3920-25 hurdle to retake controls.
GBP/USD remains offered around 1.3800, down 0.07% intraday, amid Wednesday’s Asian session. In doing so, the cable pair drops for the third consecutive day inside an eight-day-old rising channel bullish formation.
It should, however, be noted that the quote’s sustained trading below the 1.3920-25 hurdle, comprising 200-EMA and the upper line of the stated channel, joins bearish MACD signals to keep sellers hopeful.
Hence, the pair’s further downside to the channel’s support, near 1.3770, becomes imminent but any further weakness will portray the bearish flag on the chart, pointing towards a south-run targeting the yearly low surrounding 1.3450.
During the fall, lows marked in March and April, surrounding 1.3670, will be the key to watch.
On the flip side, corrective pullback stays meaningless until staying below 1.3925, a break of which will aim for late June’s swing high close to 1.4005.
It’s worth mentioning that the GBP/USD bulls are less likely to be convinced unless witnessing a successful run-up beyond the late May’s low near 1.4090.
GBP/USD: Four-hour 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.