- 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
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
GBP/USD approaches 1.2350 amid Brexit optimism, Fed’s dovish hike, focus on BoE

GBP/USD renews intraday high near 1.2310 as it rises towards the seven-week high, marked the previous day, while bulls keep the reins ahead of the Bank of England’s (BoE) monetary policy announcements. Strong UK inflation, UK PM Sunak’s Brexit success adds strength to the Cable pair’s run-up.
EUR/USD re-attempts 1.0900 on dovish Fed-induced USD weakness

EUR/USD is trading near 1.0900, extending gains early Thursday. The pair stays firmer amid a broadily depressed US Dollar. Investors are assessing the latest dovish outlook from the Fed ahead of the SNB and BoE policy outcomes, which could trigger fresh volatility surge across the FX board.
Gold set to retake $2,000 on dovish Federal Reserve outlook Premium

Gold is gathering pace for the next push higher as US Dollar stays offered. US Treasury bond yields got smashed on dovish US Federal Reserve policy guidance. XAU/USD price is forming a bull pennant on the daily chart, with a bullish RSI.
Binance market share could drop after abolishing most zero-fee trading, boosts TrueUSD stablecoin

Binance phased out almost all zero-fee buying and selling Bitcoin (BTC) along with multiple trading pairs from its platform after nine months on Wednesday. An exemption was allowed for the TrueUSD/Bitcoin (TUSD/BTC) pair. This built atop a March 10 move to quietly wind down BUSD auto-conversion.
Bank of England and Swiss National Bank both set to hike

The Bank of England and Swiss National Bank both make monetary policy announcements tomorrow, March 23. Our base case is for the Bank of England to raise its policy rate 25 basis points to 4.25% this week, and then pause tightening. However, an unexpected quickening of inflation has added some uncertainty to that outlook.