GBP/USD Price Analysis: Sellers attack 1.3820 support confluence with eyes on early February low


  • GBP/USD drops towards three-week-old support line, 61.8% Fibonacci retracement of February run-up amid bearish MACD.
  • Early February’s horizontal support lures the bears, bulls need decisive break above 1.4000 for fresh entry.

GBP/USD bounces off intraday low, stays depressed, while picking up the bids to 1.3842, down 0.23% on a day, amid an initial Asian session on Monday. In doing so, the cable extends last week’s pullback from the 1.4000 threshold amid bearish MACD.

However, GBP/USD sellers need to break solid support comprising an ascending trend line from March 05 as well as 61.8% Fibonacci retracement of the pair’s rise during the previous month, around 1.3820.

Given the downbeat MACD and failures to cross the key hurdle, not to forget the recently bearish fundamentals, GBP/USD is up for breaking the said support convergence near 1.3820, which in turn will direct bears towards an area comprising early February levels surrounding 1.3680.

Meanwhile, a corrective pullback can eye 50% Fibonacci retracement level around 1.3900 before trying to tackle the 1.4000 round-figure for one more time.

It should be noted that if at all the GBP/USD bulls manage to stay strong beyond 1.4000, February 24 low near 1.4080 and February 25 top near 1.4185 can offer intermediate halts during the rally to the last month’s high of 1.4243.

GBP/USD four-hour chart

Trend: Further weakness expected

Additional important levels

Overview
Today last price 1.3834
Today Daily Change -40 pips
Today Daily Change % -0.29%
Today daily open 1.3874
 
Trends
Daily SMA20 1.3947
Daily SMA50 1.3819
Daily SMA100 1.3594
Daily SMA200 1.3234
 
Levels
Previous Daily High 1.3959
Previous Daily Low 1.3831
Previous Weekly High 1.4002
Previous Weekly Low 1.3809
Previous Monthly High 1.4243
Previous Monthly Low 1.3566
Daily Fibonacci 38.2% 1.388
Daily Fibonacci 61.8% 1.391
Daily Pivot Point S1 1.3817
Daily Pivot Point S2 1.3759
Daily Pivot Point S3 1.3688
Daily Pivot Point R1 1.3945
Daily Pivot Point R2 1.4017
Daily Pivot Point R3 1.4074

 

 

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