GBP/USD Price Analysis: Monthly support line probe bears near 1.2900
- GBP/USD bears catch a breather after canceling Wednesday’s gains the previous day.
- Bearish MACD keeps sellers hopeful of breaking immediate downside barriers.
- An eight-day-old horizontal line restricts immediate upside moves.
GBP/USD remains on the back foot despite taking rounds to 1.2900 during the early Asian session on Friday. The cable dropped heavily the previous day but couldn’t conquer an ascending trend line from September 30.
With the MACD flashing bearish signals sellers are waiting for entries below the 1.2890 immediate support line figure.
While the current week’s bottom surrounding 1.2860 can initially probe the bears, any further downside might not hesitate to challenge September 30 low near 1.2805.
In a case where the GBP/USD sellers keep the reins past-1.2805, they need to break the 1.2800 threshold before challenging the previous month’s low near 1.2675.
Alternatively, any recoveries below a horizontal trend line from October 6, at 1.3000 now, can be considered ephemeral. Though, intermediate bounces to 1.2945/50 can’t be ruled out.
It should, however, be noted that the GBP/USD bulls will aim for the monthly top close to 1.3085 after crossing the aforementioned trend line resistance.
GBP/USD four-hour chart
Trend: Bearish
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.
