GBP/USD Price Analysis: Sellers seek validation below 61.8% Fibonacci near 1.3720
|- GBP/USD edges lower on Monday in the early Asian trading hours.
- The pair is under renewed selling pressure below 20-day SMA.
- Bears lookout for some fresh upcoming selling opportunities.
GBP/USD turns south in a 30-pips movement on Monday’s morning in the Asian trading session. The pair came under fresh selling pressure on Friday, once bears took the 20-day Simple Moving Average (SMA) at 1.3780 out.
At the time of writing, GBP/USD is trading at 1.3727, down 0.10% for the day.
GBP/USD daily chart
Technically speaking, after testing the high of 1.3913 on Tuesday, GBP/USD bears dominated the trade and refreshed weekly lows near 1.3730 on Friday. Furthermore, a daily close below the 20-day SMA strengthens the negative outlook for the pair.
Now, a break of the 61.8% Fibonacci retracement level, which extends from the low of 1.3602 at 1.3719 would entice fresh rounds of selling for the spot. In doing so, the first downside target would appear to be the 1.3690 horizontal support level.
The Moving Average Convergence Divergence (MACD) indicator slips below the midline. This would mean that the bears would easily take out the 1.3660 horizontal support level followed by the low of August 23 low of 1.3612.
Alternatively, on the reverse side, with a sustained move above the 50% Fibonacci level at 1.3754, the bulls would attack the 20-day SMA at 1.3788.
GBP/USD bulls above the psychological level of 1.3800, make a journey toward the 1.3840 horizontal resistance level and then the high made on September 10 at 1.3888.
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