GBP/USD Price Analysis: Sellers attack 1.3800 inside short-term rising channel
- GBP/USD refreshes intraday low during a three-day downtrend.
- Ascending trend channel from July 02 tests the bears.
- Bulls need to cross 1.3920-25 hurdle to retake controls.
GBP/USD remains offered around 1.3800, down 0.07% intraday, amid Wednesday’s Asian session. In doing so, the cable pair drops for the third consecutive day inside an eight-day-old rising channel bullish formation.
It should, however, be noted that the quote’s sustained trading below the 1.3920-25 hurdle, comprising 200-EMA and the upper line of the stated channel, joins bearish MACD signals to keep sellers hopeful.
Hence, the pair’s further downside to the channel’s support, near 1.3770, becomes imminent but any further weakness will portray the bearish flag on the chart, pointing towards a south-run targeting the yearly low surrounding 1.3450.
During the fall, lows marked in March and April, surrounding 1.3670, will be the key to watch.
On the flip side, corrective pullback stays meaningless until staying below 1.3925, a break of which will aim for late June’s swing high close to 1.4005.
It’s worth mentioning that the GBP/USD bulls are less likely to be convinced unless witnessing a successful run-up beyond the late May’s low near 1.4090.
GBP/USD: Four-hour chart
Trend: Further weakness 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.
