GBP/USD Price Analysis: Hovers below key hurdle to the north, 1.3610 in focus
- GBP/USD prices remains lackluster after positing the biggest daily jump in a week.
- A clear upside break of 100-DMA joins bullish MACD signals, three-week-old support line to keep buyers hopeful.
- Horizontal area from August 20 precedes 61.8% Fibonacci retracement level to challenge bulls.
GBP/USD struggles to extend the previous day’s recovery moves near 1.3585 heading into Monday’s London open. In doing so, the cable pair seesaws below a horizontal resistance region established from August 20.
However, a clear upside break of the 100-DMA and a three-week-long uptrend, portrayed by the short-term support line, join the bullish MACD signals to favor buyers battling the 1.3600-3610 resistance zone.
It’s worth noting that the 61.8% Fibonacci retracement level of September-December downside, near 1.3625, adds to the upside filters before fueling the GBP/USD prices towards November’s peak near 1.3700.
Following that, the 200-DMA level surrounding 1.3740 will challenge the pair buyers afterward.
On the contrary, a convergence of the 100-DMA and aforementioned support line restricts short-term declines of the GBP/USD pair near 1.3555-3550.
Even if the cable pair drops below 1.3550, November 18 swing high and 38.2% Fibonacci retracement level, close to 1.3515 and 1.3450 in that order, will challenge the pair sellers.
GBP/USD: Daily chart
Trend: Further upside 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.
