GBP/USD Price Analysis: Upside needs validation above 1.3670
|- GBP/USD nurses the losses on Tuesday following the previous day’s rout.
- Price shows resilience near 1.3650, lacks conviction for strong upside movement.
- Momentum oscillator slips below midline turns negative.
GBP/USD takes a breather after the previous session’s heavy sell-off. The pair dropped below 1.3650 in a more than 100-pips movement. At the time of writing, GBP/USD is trading at 1.3660, up 0.03% for the day.
GBP/USD 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 50-day and 100-day Simple Moving Averages (SMA), which confirms the pressured movement for the pair at least in the short term.
Having said that, if the price is sustained below the intraday low, it could move back to the 1.3640 horizontal support level followed by the monthly low made on August 20 at 1.3602.
The Moving Average Convergence Divergence (MACD) indicator slips below the midline. This would mean that the bears would easily take out the low of 1.3572 made on July 20.
Alternatively, on the reversal side the immediate resistance appears at the 1.2700 psychological level.
GBP/USD bulls above the key level would be encouraged to retest the previous day high of 1.3752, and then the 1.3800 horizontal resistance level.
GBP/USD additiona levels
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