- GBP/USD stays pressured around the short-term key support confluence.
- Convergence of 200-DMA, one-month-old ascending trend line restricts immediate downside.
- The looming bear cross on MACD keeps sellers hopeful, previous resistance line from June acts as additional downside filter.
GBP/USD bears keep the reins as they battle with the 1.2100 key support amid the early Wednesday morning in London. In doing so, the Cable pair drops for the third consecutive day.
That said, the looming bear cross on the MACD indicator hints at the quote’s further downside. However, the 200-DMA and an upward-sloping trend line from November 10 restrict the quote’s immediate declines.
In a case where the GBP/USD bears manage to post a daily close below 1.2100, the resistance-turned-support line from June, near 1.1965, could lure the sellers. It should be noted that the 1.2000 psychological magnet may act as a buffer during the fall.
If at all the GBP/USD price fails to reverse from 1.1965, the 61.8% Fibonacci retracement level of the May-September downside, near 1.1780, will be in focus while checking for the quote’s further weakness.
On the flip side, highs marked in August around 1.2300 and the monthly peak near 1.2345 could challenge immediate GBP/USD recovery.
Following that, the mid-June low near 1.2410 holds the key to the GBP/USD pair upside towards the mid-2022 high, close to 1.2665.
Overall, GBP/USD is likely to witness further downside but the room towards the south is bumpy.
GBP/USD: Daily chart
Trend: Further downside expected
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