GBP/USD Price Analysis: Bulls and bears jostle around 1.3900

GBP/USD struggles to keep late Monday’s recovery moves from 1.3852.
Bearish momentum, failures to cross short-term resistance line favor sellers.
50-day SMA, 4.5-month-old support line challenge further downside.

Anil Panchal FXStreet

GBP/USD hangs around 1.3900 amid the initial Asian session trading on Tuesday. The cable dropped for the second consecutive day on Monday after reversing from a 12-day-long falling trend line during Friday. However, the downside faltered around mid-1.3800s before struggling for direction off-late.

Considering the GBP/USD pair’s sustained weakness below the stated resistance line, at 1.4006 now, coupled with the downward sloping Momentum line, sellers are on their way to a 50-day SMA level of 1.3798.

Though, any further weakness past-1.3798 will have to break an ascending support line from early November 2020, currently around 1.3765, to convince the GBP/USD bears.

Meanwhile, recovery moves need to break the immediate resistance line near 1.4010 before directing GBP/USD buyers towards the monthly top of 1.4017 and February 26 peak close to 1.4030.

In a case where the quote manages to cross 1.4030 on a daily closing basis, its run-up to refresh the multi-month top, marked the previous month, around 1.4245, can’t be ruled out.

GBP/USD daily chart

Trend: Further weakness expected

Additional important levels

Overview
Today last price	1.3896
Today Daily Change	-33 pips
Today Daily Change %	-0.24%
Today daily open	1.3929

Trends
Daily SMA20	1.3952
Daily SMA50	1.3786
Daily SMA100	1.3547
Daily SMA200	1.3203

Levels
Previous Daily High	1.4005
Previous Daily Low	1.3864
Previous Weekly High	1.4005
Previous Weekly Low	1.38
Previous Monthly High	1.4243
Previous Monthly Low	1.3566
Daily Fibonacci 38.2%	1.3918
Daily Fibonacci 61.8%	1.3951
Daily Pivot Point S1	1.386
Daily Pivot Point S2	1.3791
Daily Pivot Point S3	1.3719
Daily Pivot Point R1	1.4002
Daily Pivot Point R2	1.4074
Daily Pivot Point R3	1.4143

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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