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.
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
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.
