GBP/USD Price Analysis: Recovery remains doubtful below 200-DMA

GBP/JPY keeps bounce off February lows, picks up bids of late.
Poised for further downside as bearish MACD backs monthly support line, 200-DMA breaks.
September 2020 peak, yearly low on bears’ radars.

Anil Panchal FXStreet

GBP/USD picks up bids to 1.3630, consolidate losses around a five-month low, amid Wednesday’s Asian session. In doing so, the cable pair confronts previous support stretched from June while keeping the downside break of 200-DMA amid bearish MACD.

Given the little distance from the key support and a lack of trend reversal suggesting catalysts, the quote is likely to extend the south-run towards the yearly low of 1.3451.

However, September 2020 high near 1.3480 can offer an intermediate halt during the fall whereas fresh selling could take place below the latest low, also teased in February surrounding 1.3570-65.

Meanwhile, a clear break of the previous support line near 1.3640 won’t recall the GBP/USD buyers as a 200-DMA level of 1.3705 could test the bulls.

Also likely to challenge the recovery movement is the May month’s low near 1.3800 and the monthly high close to 1.3910.

Overall, GBP/USD bears are catching a breather but not out of the woods.

GBP/USD: Daily chart

Trend: Bearish

Additional important levels

Overview
Today last price	1.3629
Today Daily Change	-0.0047
Today Daily Change %	-0.34%
Today daily open	1.3676

Trends
Daily SMA20	1.3841
Daily SMA50	1.4003
Daily SMA100	1.3933
Daily SMA200	1.3699

Levels
Previous Daily High	1.3777
Previous Daily Low	1.3654
Previous Weekly High	1.391
Previous Weekly Low	1.3761
Previous Monthly High	1.4249
Previous Monthly Low	1.3787
Daily Fibonacci 38.2%	1.3701
Daily Fibonacci 61.8%	1.373
Daily Pivot Point S1	1.3628
Daily Pivot Point S2	1.358
Daily Pivot Point S3	1.3505
Daily Pivot Point R1	1.375
Daily Pivot Point R2	1.3825
Daily Pivot Point R3	1.3873

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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