GBP/USD Price Analysis: Sellers enjoy downside below 50-day SMA at 1.3800

GBP/USD remains muted in the initial Asian trading hours on Wednesday.
More downside for pair if price breaks the ascending trendline near 1.3780.
Momentum oscillator holds onto the oversold zone with a neutral stance.

Rekha Chauhan Independent Analyst

GBP/USD prints minor losses on Wednesday in the Asian session. After falling nearly 90 pips in the overnight session, from the highs of 1.3856, the pair consolidates losses near the lower levels.

At the time of writing, the GBP/USD pair is trading at 1.3782, down 0.02% for the day.

GBP/USD daily chart

On the daily chart, GBP/USD has recovered from the low made on August 20 at 1.3602 to touch the high at around 1.3891 on September 3.

The formation of two consecutive red candles suggests bears are in full swing despite the hawkish comments from the Bank of England (BOE) policymaker Michael Saunders. He said the UK does not need as much stimulus as before.

Technically speaking, If price breaks the session’s low, it could move lower toward the 1.3750 and the 1.3700 horizontal support levels.

The Moving Average Convergence Divergence (MACD) indicator still points at the underlying bearish sentiment. Any downtick in the MACD could bring more selling opportunities.

That said, GBP/USD bears would like to test the 1.3650 horizontal support level.

Alternatively, if price moves higher, GBP/USD bulls would first encounter with 50-day Simple Moving Average (SMA) at 1.3805.

On the successful test of the above level, the market participants will encourage to touch the 1.3850 horizontal resistance level and then would attempt to take out the high made on September 3 at 1.3891.

GBP/USD additional levels

GBP/USD

Overview
Today last price	1.3779
Today Daily Change	-0.0057
Today Daily Change %	-0.41
Today daily open	1.3836

Trends
Daily SMA20	1.3774
Daily SMA50	1.3807
Daily SMA100	1.3921
Daily SMA200	1.3817

Levels
Previous Daily High	1.3874
Previous Daily Low	1.3819
Previous Weekly High	1.3892
Previous Weekly Low	1.3731
Previous Monthly High	1.3958
Previous Monthly Low	1.3602
Daily Fibonacci 38.2%	1.384
Daily Fibonacci 61.8%	1.3853
Daily Pivot Point S1	1.3811
Daily Pivot Point S2	1.3787
Daily Pivot Point S3	1.3756
Daily Pivot Point R1	1.3867
Daily Pivot Point R2	1.3898
Daily Pivot Point R3	1.3922

Author

Rekha Chauhan

Independent Analyst

Rekha Chauhan has been working as a content writer and research analyst in the forex and equity market domain for over two years.

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