GBP/USD Price Analysis: Bounces off monthly support to defend 1.3800
- GBP/USD consolidates the previous day’s losses, picks up bids of late.
- Sluggish MACD challenges recovery moves inside short-term rising channel.
- 200-SMA adds to the upside filters, channel support will be crucial for bears.
GBP/USD pokes intraday high of 1.3835, up 0.05% intraday during the subdued Asian session on Friday.
In doing so, the cable pair pares Thursday’s losses following its bounce off a two-week-old horizontal support zone surrounding the 1.3800 threshold.
Even so, MACD conditions aren’t favorable to the pair’s further upside, which in turn suggests fresh pullback from nearby resistances, namely 1.3875-80 and the 1.3900 round figure.
Should the quote fails to reverse from 1.3900, the upper line of an ascending trend channel from June 30 near 1.3920 and 200-SMA level close to 1.3955 become the key hurdles to watch.
Meanwhile, a downside break of the 1.3800 nearby support will direct GBP/USD sellers to attack the channel’s support close to 1.3780.
It’s worth noting that the pair’s sustained break of 1.3780 will confirm the bearish trajectory towards the lows marked during March and April surrounding 1.3670. During the fall, the monthly bottom of 1.3731 may test the pair bears.
GBP/USD: Four-hour chart
Trend: Tepid recovery 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.
