GBP/USD Price Analysis: Sellers attack 50-DMA on monthly support break

GBP/USD fades bounce off weekly low, keeps monthly support line breakdown.
Bullish MACD challenges downside past 50-DMA, recovery moves have a bumpy road below 200-DMA.

Anil Panchal FXStreet

GBP/USD prints a three-day downtrend following the key support break, pressured around 1.3740 during the early Asian session on Thursday.

The cable pair broke an ascending support line, now resistance, from September 30 the previous day but refrained from closing below 50-DMA.

Given the bullish MACD signals and multiple supports around the 1.3710-3700 area, comprising 50-DMA and 50% Fibonacci retracement of late July-September fall, the GBP/USD pair’s heavy downside remain doubtful.

However, a daily closing below 1.3700 won’t hesitate to direct the pair bears towards August lows of 1.3600.

Meanwhile, a convergence of the previous support and 61.8% Fibonacci retracement level near 1.3770-75 guards the quote’s corrective pullback ahead of the 200-DMA level surrounding 1.3855.

In a case where GBP/USD bulls manage to conquer the 1.3855 hurdle, September’s high of 1.3913 and July peak close to 1.3985 may probe the run-up towards the 1.4000 psychological magnet.

GBP/USD: Daily chart

Trend: Further weakness expected

Additional impotant levels

Overview
Today last price	1.3741
Today Daily Change	-0.0023
Today Daily Change %	-0.17%
Today daily open	1.3764

Trends
Daily SMA20	1.366
Daily SMA50	1.3711
Daily SMA100	1.3792
Daily SMA200	1.3851

Levels
Previous Daily High	1.3829
Previous Daily Low	1.3757
Previous Weekly High	1.3834
Previous Weekly Low	1.3709
Previous Monthly High	1.3913
Previous Monthly Low	1.3412
Daily Fibonacci 38.2%	1.3785
Daily Fibonacci 61.8%	1.3802
Daily Pivot Point S1	1.3738
Daily Pivot Point S2	1.3711
Daily Pivot Point S3	1.3666
Daily Pivot Point R1	1.381
Daily Pivot Point R2	1.3856
Daily Pivot Point R3	1.3883

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.

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