GBP/USD Price Analysis: Bears bracing for a bumpy road to 1.3570
- GBP/USD grinds lower around mid-October lows after three-day downtrend.
- Bearish MACD, sustained trading below 50-DMA favor sellers.
- Horizontal supports from August and July test immediate downside.
GBP/USD licks its wounds around 1.3620, the lowest level in three weeks as traders brace for the key Wednesday morning in Asia.
Although a clear downside break of 50-DMA and bearish MACD signals back the GBP/USD sellers, nearness to the key support zones and the RSI line’s proximity to the oversold area can put a floor under the prices.
That being said, a horizontal area comprising multiple lows marked since August 20, around 1.3600-3610 acts as an immediate challenge for the pair bears before targeting another support region surrounding 1.3575-70, stretched from July.
Should the quote refrain from bouncing off 1.3570, the 1.3500 threshold may offer an intermediate halt before dragging the quote to the yearly bottom close to 1.3410.
On the contrary, an upside clearance of 50-DMA level of 1.3710 isn’t a green pass to the GBP/USD buyers as the late September’s swing high close to 1.3750 and October’s peak of 1.3833 could challenge the bulls before giving them controls.
To sum up, GBP/USD remains weak but has strong supports on the downside to limit the short-term declines.
GBP/USD: Daily chart
Trend: Further weakness expected
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.
