GBP/USD Price Analysis: Poised for further downside towards 1.4000

GBP/USD stays depressed around Monday’s low, defends 1.4050 of late.
Pullback from five-week-old ascending channel, bearish MACD favor sellers.
Bulls remain hopeful until witnessing a downside break of 1.3880.

Anil Panchal FXStreet

GBP/USD bears lick their wounds near 1.4060, up 0.08% intraday, during Thursday’s Asian session. The cable pair dropped the most in May the previous day on broad US dollar strength.

Sellers are likely to keep the reins as Wednesday’s losses pulled the GBP/USD prices back from a short-term rising channel’s resistance line, coupled with bearish MACD.

Hence, the quote’s further losses towards late April top surrounding 1.4010, quickly followed by the 1.4000 threshold, can’t be ruled out.

However, any additional downside will have to defy the bullish chart pattern by breaking 1.3880 support to the south, which in turn could immediately challenge the monthly low near the 1.3800 round figure.

Meanwhile, the 1.4100 mark guards the pair’s immediate recovery moves ahead of the stated channel’s resistance line, around 1.4165.

In a case where the GBP/USD rallied beyond 1.4165, the yearly top surrounding 1.4245 will be in the spotlight.

GBP/USD four-hour chart

Trend: Further downside expected

Additional important levels

Overview
Today last price	1.4064
Today Daily Change	-79 pips
Today Daily Change %	-0.56%
Today daily open	1.4143

Trends
Daily SMA20	1.3916
Daily SMA50	1.3866
Daily SMA100	1.3798
Daily SMA200	1.346

Levels
Previous Daily High	1.4166
Previous Daily Low	1.4104
Previous Weekly High	1.4006
Previous Weekly Low	1.3801
Previous Monthly High	1.4009
Previous Monthly Low	1.3669
Daily Fibonacci 38.2%	1.4143
Daily Fibonacci 61.8%	1.4128
Daily Pivot Point S1	1.4109
Daily Pivot Point S2	1.4075
Daily Pivot Point S3	1.4047
Daily Pivot Point R1	1.4172
Daily Pivot Point R2	1.42
Daily Pivot Point R3	1.4234

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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