GBP/USD Price Analysis: Eases towards 1.4160 support confluence
- GBP/USD remains on the back foot, follows a two-day-old descending trend line.
- Convergence of 100, 200-HMA lures intraday sellers before short-term support line.
- Downbeat MACD conditions, failures to cross nearby resistance favor sellers.
GBP/USD retreats to 1.4185, down 0.05% intraday, amid Monday’s Asian session. In doing so, the cable respects a downward sloping trend line from Thursday amid sluggish MACD signals.
That said, the pair drops towards a convergence of 100 and 200-HMA around 1.4160 but the following declines will be tested by a two-day-long support line, near 1.4150.
Although the bearish impulse is likely to fade around 1.4150, any further weakness may not refrain from challenging the 1.4100 threshold, comprising the previous week’s low.
Meanwhile, an upside clearance of the immediate hurdle near 1.4195 needs to cross the 1.4200 psychological magnet before targeting the 1.4235-45 area comprising the monthly and the yearly peaks.
In a case where the GBP/USD bulls keep reins beyond 1.4245, the 1.4300threshold and early 2018 levels near 1.4345 will be in focus.
GBP/USD hourly 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.
