GBP/USD Price Analysis: Fades rebound below 100-DMA, focus on 1.3740-35

GBP/USD fails to extend the first daily gains in three.
Steady RSI, sustained trading below key SMAs keeps sellers hopeful.
Previous resistance line from July adds strength to immediate support.

Anil Panchal FXStreet

GBP/USD drops back to 1.3765 after snapping a two-day downtrend. In doing so, the cable pair fades the previous day’s bounce off the three-month-old resistance-turned-support during the early Asian session on Tuesday.

Given the quote’s inability to cross the 100-DMA and 200-DMA, coupled with the steady RSI, GBP/USD prices are likely to retest the previous resistance line around 1.3740-35. Also adding to the support’s strength is an ascending trend line from September 30.

It should be noted, however, that the pair’s weakness past 1.3735 will make it vulnerable to rest the early October’s top near 1.3675 before highlighting lows marked in August and July, respectively around 1.3600 and 1.3570 for the bears.

Alternatively, the 100-DMA level of 1.3792 precedes the 1.3800 round figure to guard the short-term GBP/USD recovery moves.

Following that, the recent swing high near 1.3835 and 200-DMA level close to 1.3850 will be the key to watch.

Overall, GBP/USD is likely to witness additional downside towards the key support confluence but bears should wait for confirmation.

GBP/USD: Daily chart

Trend: Further weakness expected

Additional important levels

Overview
Today last price	1.3764
Today Daily Change	0.0009
Today Daily Change %	0.07%
Today daily open	1.3755

Trends
Daily SMA20	1.3645
Daily SMA50	1.3712
Daily SMA100	1.38
Daily SMA200	1.385

Levels
Previous Daily High	1.3815
Previous Daily Low	1.3736
Previous Weekly High	1.3834
Previous Weekly Low	1.3709
Previous Monthly High	1.3913
Previous Monthly Low	1.3412
Daily Fibonacci 38.2%	1.3766
Daily Fibonacci 61.8%	1.3785
Daily Pivot Point S1	1.3722
Daily Pivot Point S2	1.369
Daily Pivot Point S3	1.3644
Daily Pivot Point R1	1.3801
Daily Pivot Point R2	1.3848
Daily Pivot Point R3	1.388

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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