GBP/USD Price Analysis: Keeps bounce off two-month-old support towards 1.3400

GBP/USD holds onto corrective pullback from yearly low.
RSI conditions favor rebound towards one-month-old resistance line, 200-DMA adds to upside hurdles.
Descending trend line from July becomes additional support before December 2020 bottom.

Anil Panchal FXStreet

GBP/USD bounces off intraday low to extend the previous day’s U-turn from the 2021 bottom, around 1.3380 during Wednesday’s Asian session.

A descending support line from late September triggered the cable pair’s recovery moves on Tuesday.

Given the nearly oversold RSI conditions favoring the latest rebound, the pair’s advances towards a one-month-old resistance line near 1.3460 can’t be ruled out.

However, the GBP/USD pair’s bearish trend can’t be ruled out until the quote stays below the 200-DMA level surrounding 1.3830.

On the other hand, the pair’s sustained weakness needs a daily closing below the stated support line, around 1.3330 by the press time, to extend the south-run.

In doing so, a downward sloping trend line from July 20, near 1.3285, will be the key to watch.

GBP/USD: Daily chart

Trend: Further recovery expected

Additional important levels

Overview
Today last price	1.3377
Today Daily Change	-0.0003
Today Daily Change %	-0.02%
Today daily open	1.338

Trends
Daily SMA20	1.3527
Daily SMA50	1.3614
Daily SMA100	1.371
Daily SMA200	1.383

Levels
Previous Daily High	1.341
Previous Daily Low	1.3343
Previous Weekly High	1.3514
Previous Weekly Low	1.3396
Previous Monthly High	1.3834
Previous Monthly Low	1.3434
Daily Fibonacci 38.2%	1.3368
Daily Fibonacci 61.8%	1.3384
Daily Pivot Point S1	1.3346
Daily Pivot Point S2	1.3311
Daily Pivot Point S3	1.3279
Daily Pivot Point R1	1.3412
Daily Pivot Point R2	1.3445
Daily Pivot Point R3	1.348

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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