GBP/USD Price Analysis: Bears brace for July low ahead of BOE

GBP/USD remains on the back foot around monthly low.
Downside break of two-month-old support, bearish MACD favor sellers.
200-day EMA adds to the upside filters, 61.8% Fibonacci retracement offers extra support.

Anil Panchal FXStreet

GBP/USD bears keep controls around 1.3620 amid the initial Asian session on the Super Thursday, after refreshing the monthly low with 1.3609 due to the Fed tapering before a few hours.

The cable pair’s recent fall broke an ascending support line from July, which in turn joins bearish MACD signals to hint at the quote’s further downside.

The same highlights lows marked in August and July, respectively around 1.3600 and 1.3570, as immediate support to watch as the markets brace for the Bank of England (BOE) announcements.

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However, GBP/USD weakness past 1.3570 will depend upon how well it can conquer the 61.8% Fibonacci retracement (Fibo.) of December 2020 to June 2021 upside, near 1.3560.

On the contrary, the support-turned-resistance line near 1.3635 guards corrective pullback ahead of the 50% Fibo. level near 1.3695.

Even if the GBP/USD bulls manage to cross the 1.3700 threshold, the 200-day EMA level of 1.3730 will be the key to challenge the pair buyers.

GBP/USD: Daily chart

Trend: Further weakness expected

Additional important levels

Overview
Today last price	1.3621
Today Daily Change	-0.0040
Today Daily Change %	-0.29%
Today daily open	1.3661

Trends
Daily SMA20	1.3781
Daily SMA50	1.3797
Daily SMA100	1.3908
Daily SMA200	1.384

Levels
Previous Daily High	1.3693
Previous Daily Low	1.3641
Previous Weekly High	1.3913
Previous Weekly Low	1.3728
Previous Monthly High	1.3958
Previous Monthly Low	1.3602
Daily Fibonacci 38.2%	1.3673
Daily Fibonacci 61.8%	1.3661
Daily Pivot Point S1	1.3637
Daily Pivot Point S2	1.3613
Daily Pivot Point S3	1.3585
Daily Pivot Point R1	1.3689
Daily Pivot Point R2	1.3717
Daily Pivot Point R3	1.3741

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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