GBP/USD Price Analysis: Upside needs validation above the descending trendline near 1.3780
|- GBP/USD edges higher on Tuesday in the Asian trading hours.
- The pair faces strong resistance near the 1.3770-1.3780 zone below the bearish slopping line.
- MACD signals upside momentum with the underlying bullish sentiment.
GBP/USD trades on a higher note on Tuesday. The pair opened lower but swiftly recovered to claim 1.3750, where it currently hovers.
GBP/USD daily chart
On the daily chart, the GBP/USD pair has been in the continuous downward trend since the high made on July 30 at 1.3983. The descending trendline from the mentioned level act as a strong barrier for GBP/USD. The spot trades above the 50-day Simple Moving Average (SMA) at 1.3716 makes bulls hopeful of some recovery.
If the pair sustains above the intraday high along with the break of the bearish slopping line that would mean GBP/USD bulls can test the psychological 1.3800 mark. A successful break of the 100-day SMA at 1.3812 could pave way for the 1.3850 horizontal resistance level.
The Moving Average Convergence Divergence (MACD) indicator holds onto the oversold zone. Any uptick in the MACD could bring some upside momentum for the spot. The bulls would approach the psychological 1.3900 level in that case.
Alternatively, a daily close below the 50-day SMA at 1.3714 would result in the continuation of the prevailing trend, with the first downside target at Friday’s low of 1.3667, followed by the 1.3555 horizontal support zone.
Next, the bears would not mind to takeout the 1.3500 horizontal support level.
GBP/USD additional levels
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