GBP/USD Price Analysis: Glides inside symmetrical triangle, 1.3580 support remains critical


  • GBP/USD edges lower on Wednesday in the early Asian trading hours.
  • The pair faces strong resistance near 1.3650 inside the symmetrical triangle.
  • Downside needs validation below 1.3580, MACD holds in the oversold zone.

GBP/USD has continued to consolidate for the past few sessions with downside risk. The pair confides in a narrow trade band with small losses. At the time of writing, GBP/USD is trading at 1.3583, down 0.04% for the day.

GBP/USD daily chart

On the daily chart, after testing the high of 1.3913 on September 14, the GBP/USD pair lost momentum and continued with its existing short-term downside trend. Furthermore, the spot trades below the 21-day Simple Moving Average (SMA) at 1.3629 inside the symmetrical triangle formation, which confirms the pressured movement for the pair at least in the short term. Having said that, if the price breaks the intraday low, it could test the ascending trendline of the mentioned triangle at 1.3565, extending from the low of 1.3411.

The break of the bullish slopping line would further confirm the continuation of the downside momentum for the pair. GBP/USD bears shall look out for the 1.3500 horizontal support level followed by the October 1 low at 1.3433.

The Moving Average Convergence Divergence (MACD) indicator holds onto the oversold zone. This means that any uptick in the MACD could bring some upside momentum for the spot price. The bulls would approach the psychological 1.3600 level in that case. Next, the pair would be prompted to test the 21-SMA at 1.3629 followed by the 1.3650 horizontal resistance level.

GBP/USD additional levels

 

Overview
Today last price 1.3577
Today Daily Change -0.0011
Today Daily Change % -0.08
Today daily open 1.3588
 
Trends
Daily SMA20 1.3632
Daily SMA50 1.3731
Daily SMA100 1.3834
Daily SMA200 1.3844
 
Levels
Previous Daily High 1.3638
Previous Daily Low 1.3568
Previous Weekly High 1.3659
Previous Weekly Low 1.3532
Previous Monthly High 1.3913
Previous Monthly Low 1.3412
Daily Fibonacci 38.2% 1.3595
Daily Fibonacci 61.8% 1.3611
Daily Pivot Point S1 1.3559
Daily Pivot Point S2 1.3529
Daily Pivot Point S3 1.349
Daily Pivot Point R1 1.3628
Daily Pivot Point R2 1.3667
Daily Pivot Point R3 1.3697

 


 

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