GBP/USD Price Analysis: Off weekly bottom above 1.3800 but not out of woods

GBP/USD struggles to defend the bounce off weekly low.
Four-month-old horizontal area restricts immediate downside, monthly resistance line tests corrective pullback.
Cap on Momentum line, sustained trading below 100-day SMA keeps sellers hopeful.

Anil Panchal FXStreet

The GBP/USD pair’s bounce off weekly bottom remains capped around 1.3835-40 during the early Asian session on Thursday. In doing so, the cable pair justifies its sustained trading below one-month-old resistance line and bearish Momentum, as well as downbeat RSI.

However, the bears have a tough nut to crack on hand as multiple levels marked since early March, around 1.3810–3800, challenge the further declines targeting the yearly low surrounding 1.3670.

During the fall, the 1.3745-50 and the 1.3700 threshold may offer an intermediate halt during the quote’s weakness between 1.3800 and 1.3670.

Alternatively, a daily closing beyond the stated resistance line near 1.3865 will aim for the 100-DMA level of 1.3952. Though, the early April top surrounding 1.3920 can act as a buffer.

Should the GBP/USD bulls manage to cross the 1.3952 hurdle, multiple resistances between the 1.4000 round figure and 1.4010 can test the quote’s advances.

It’s worth noting that the Momentum line probes a five-week-old resistance and a breakout may favor the pair’s latest corrective pullback.

GBP/USD daily chart

Trend: Further weakness expected

Additional important levels

Overview
Today last price	1.383
Today Daily Change	-0.0006
Today Daily Change %	-0.04%
Today daily open	1.3836

Trends
Daily SMA20	1.4023
Daily SMA50	1.4032
Daily SMA100	1.3952
Daily SMA200	1.3634

Levels
Previous Daily High	1.3886
Previous Daily Low	1.3814
Previous Weekly High	1.4001
Previous Weekly Low	1.3787
Previous Monthly High	1.4234
Previous Monthly Low	1.3801
Daily Fibonacci 38.2%	1.3842
Daily Fibonacci 61.8%	1.3859
Daily Pivot Point S1	1.3805
Daily Pivot Point S2	1.3774
Daily Pivot Point S3	1.3733
Daily Pivot Point R1	1.3877
Daily Pivot Point R2	1.3917
Daily Pivot Point R3	1.3948

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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