- GBP/USD extends losses below 21-day SMA, fails to stretch pullback from 1.3140 beyond 1.3184.
- An ascending trend line from July 30 lures the sellers.
- Bulls need to cross August 19 top to retake the controls.
GBP/USD drops to 1.3150, intraday low of 1.3140, during early Tuesday. In doing so, the Cable keeps Monday’s weakness past-21-day SMA amid normal RSI conditions. It should be noted that the pair marked a daily low of 1.3140 the previous day.
As a result, the bears are likely to target a short-term ascending support line near 1.3120 but the late-August lows near 1.3060 may restrict the quotes’ further weakness.
In a case where the sellers keep the reins after 1.3060, the 1.3000 threshold and July 30 low near 1.2945 will be the key to watch.
Alternatively, an upside break of 21-day SMA, currently around 1.3190 will need to cross the August 19 high of 1.3267 to recall the buyers. However, 1.3200 may offer an intermediate halt during the rise.
Should the pair manages to stay positive past-1.3267, it can easily refresh the multi-month-old resistance above 1.3480.
GBP/USD daily chart
Trend: Further weakness expected
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