GBP/USD Price Analysis: Keeps bounce off four-month-old support above 1.1400

GBP/USD licks its wounds near the lowest levels since 1985.
Oversold RSI conditions, short-term support line restrict immediate downside amid the UK’s bank holiday.
Recovery remains elusive below the 21-DMA nearly resistance, key FE levels may entertain bears below the stated support line.
Bearish trend is likely to prevail but a short-term rebound can’t be ruled out.

Anil Panchal FXStreet

GBP/USD stays defensive at around 1.1415-20 during the sluggish Asian session on Monday, after bouncing off the lowest levels since 1985 the previous day.

The Cable pair’s latest rebound could be linked to the oversold RSI (14), as well as the quote’s inability to break a downward sloping support line from mid-May.

It should, however, be noted that the recovery remains elusive until the quote stays below the 21-DMA resistance level near 1.1590.

Following that, the monthly high near 1.1740 and July’s bottom surrounding 1.1760 will be in focus.

Alternatively, GBP/USD bears may keep attacking the aforementioned support line, at 1.1330 before aiming for the 61.8% and 78.6% Fibonacci Expansion (FE) levels, respectively near 1.1285 and 1.1170.

In a case where the Cable bears keep reins past 1.1170, the 1.1000 psychological magnet and the year 1985 low near 1.0520 should gain the market’s attention.

Overall, GBP/USD is likely to remain bearish but hopes of a short-term rebound remain on the table.

GBP/USD: Daily chart

Trend: Corrective bounce expected

Additional important levels

Overview
Today last price	1.1418
Today Daily Change	-0.0003
Today Daily Change %	-0.03%
Today daily open	1.1421

Trends
Daily SMA20	1.1614
Daily SMA50	1.1871
Daily SMA100	1.2107
Daily SMA200	1.2704

Levels
Previous Daily High	1.148
Previous Daily Low	1.1351
Previous Weekly High	1.1738
Previous Weekly Low	1.1351
Previous Monthly High	1.2294
Previous Monthly Low	1.1599
Daily Fibonacci 38.2%	1.14
Daily Fibonacci 61.8%	1.1431
Daily Pivot Point S1	1.1354
Daily Pivot Point S2	1.1288
Daily Pivot Point S3	1.1225
Daily Pivot Point R1	1.1484
Daily Pivot Point R2	1.1547
Daily Pivot Point R3	1.1614

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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