GBP/USD Price Analysis: Retreats towards 1.1450 inside weekly bearish channel
- GBP/USD remains depressed inside a one-week-old bearish chart pattern.
- Downbeat MACD signals also keep sellers hopeful even if 50-SMA tests intraday bears.
- Convergence of 100-SMA, five-week-long ascending trend line appears a tough nut to crack for sellers.
GBP/USD fades the month-start optimism as it slides to 1.1480 during Wednesday’s Asian session while staying inside a one-week-long descending trend channel.
That said, the Cable pair’s latest losses also take clues from the bearish MACD signals and keep the sellers hopeful.
However, the 50-SMA level surrounding 1.1460 restricts the quote’s immediate downside ahead of the stated channel’s lower line, close to 1.1430 at the latest.
Even if the GBP/USD bears manage to conquer the 1.1430 support level, the 1.1335-30 support confluence comprising the 100-SMA and an upward-sloping trend line from late September will be a tough nut to crack for them. Following that, the monthly support line near 1.1200 will be the last defense for the pair buyers.
Alternatively, recovery moves need to defy the bearish chart pattern to please the bulls. In doing so, the quote needs to cross the 1.1575 hurdle.
Even so, October’s peak around 1.1645 will hold the gate for the GBP/USD pair’s run-up towards the September monthly high of 1.1738.
Overall, GBP/USD is likely to decline further but the road to the south appears bumpy.
GBP/USD: Four-hour chart
Trend: Limited downside 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.
