GBP/USD Price Analysis: Drops towards two-week-old support line near 1.3900

GBP/USD snaps three-day run-up as sellers attack intraday low.
100, 200-SMA confluence can test the bears amid upbeat Momentum.
Weekly resistance line guards short-term upside ahead of 1.3950 horizontal hurdle.

Anil Panchal FXStreet

GBP/USD stays pressured around the intraday low of 1.3890, down 0.12% on a day, during Wednesday’s Asian session. In doing so, the cable keeps Tuesday’s U-turn from a one-week-old resistance line while snaps a three-day uptrend.

Although sustained trading below the short-term resistance line keeps GBP/USD sellers hopeful, an ascending support line from April 12 and price-positive moves of the Momentum line suggests limited downside of the pair unless breaking 1.3885 level.

Also likely to challenge the sterling bears is the convergence of 100 and 200-SMA near 1.3830.

Meanwhile, an upside clearance of the immediate hurdle around 1.3920 should escalate the recovery moves towards a short-term horizontal area surrounding 1.3945-50.

If at all the GBP/USD buyers manage to cross 1.3950 resistance, the monthly top near 1.4010 will be in the spotlight.

GBP/USD four-hour chart

Trend: Further weakness expected

Additional important levels

Overview
Today last price	1.3891
Today Daily Change	-18 pips
Today Daily Change %	-0.13%
Today daily open	1.3909

Trends
Daily SMA20	1.3831
Daily SMA50	1.3874
Daily SMA100	1.3744
Daily SMA200	1.341

Levels
Previous Daily High	1.3924
Previous Daily Low	1.3859
Previous Weekly High	1.4009
Previous Weekly Low	1.381
Previous Monthly High	1.4017
Previous Monthly Low	1.3671
Daily Fibonacci 38.2%	1.3899
Daily Fibonacci 61.8%	1.3884
Daily Pivot Point S1	1.3871
Daily Pivot Point S2	1.3832
Daily Pivot Point S3	1.3805
Daily Pivot Point R1	1.3936
Daily Pivot Point R2	1.3963
Daily Pivot Point R3	1.4002

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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