GBP/USD Price Analysis: Bears stay on the way to mid-1.2500s
- GBP/USD fades bounce off key EMAs, keeps the previous day’s downside break of 13-day-old support.
- Steady RSI, trend line breakdown keep sellers hopeful.
- Convergence of the 21-day EMA and 10-day EMA tests bears, bulls remain away unless crossing descending resistance line from late March.
GBP/USD remains on the back foot around the intraday low as the previous day’s downside break of short-term key support, now resistance, favors sellers. That said, the cable pair stays depressed near 1.2590 by the press time, down for the second consecutive day while extending the pullback from the monthly high.
Not only the cable pair’s downside break of the previously important support but steady RSI also hints at the quote’s further weakness.
However, a confluence of the 21-day EMA and the 10-day EMA around 1.2560-50 puts a floor under the short-term GBP/USD downside.
Should the bears manage to conquer the 1.2550 support, the odds of the pair’s further south-run towards the five-week-old horizontal support near 1.2400 can’t be ruled out.
Alternatively, the support-turned-resistance line, close to 1.2680 by the press time, guards the GBP/USD pair's recovery moves.
Also acting as an upside filter is the descending trend line from March 23, around 1.2810 by the press time.
To sum up, GBP/USD’s latest jump on the bear’s table is likely to prevail for a bit longer.
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.
