- GBP/USD fades bounces off intraday low, stays pressured around weekly bottom.
- Fortnight-old resistance line, 100-EMA guard immediate run-up, RSI hints at sideways grind.
- Weekly support line restricts downside targeting yearly low.
GBP/USD licks its wounds around 1.2250 while fading the recent bounce off intraday low during Thursday’s Asian session. Even so, the cable pair remains pressured below the short-term key resistances.
In addition to the nearby hurdles, sluggish RSI (14) also weighs on the GBP/USD prices. However, an upward sloping support line from last Thursday, near 1.2180, puts a floor under the pair.
That said, a 12-day-old resistance line, at 1.2280 by the press time, guards the Cable pair’s immediate upside ahead of the 100-EMA level near 1.2330. Following that, the mid-June peak surrounding 1.2410 could lure the bulls.
It’s worth noting that there are multiple hurdles surrounding 1.2430 and 1.2470 that could challenge GBP/USD bulls past-1.2410.
Meanwhile, a downside break of the 1.2180, could avail the 1.2100 and the 1.2000 round figures as intermediate halts during the south run targeting the yearly low of 1.1933.
In a case where the GBP/USD bears dominate past 1.1933, the year 2016 low near 1.1900 may act as the last defense of the buyers before directing the quote to March 2020 bottom surrounding 1.1410.
Overall, GBP/USD is likely to extend the bearish grind towards the latest trough.
GBP/USD: Four-hour chart
Trend: Bearish
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