GBP/USD Price Analysis: Sellers look for monthly support below 1.3700
- GBP/USD continues to grind losses on Friday in the Asian session.
- Additional losses envisioned for pair if price decisively breaks 1.3680.
- Momentum oscillator holds onto the oversold zone with a neutral stance.
GBP/USD prints minor losses on Friday in the Asian session. After falling nearly 90 pips in the overnight session, from the highs of 1.3768, the pair consolidates losses near the lower levels.
At the time of writing, the GBP/USD pair is trading at 1.3691, down 0.05% for the day.
GBP/USD daily chart
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On the daily chart, GBP/USD has recovered from the yearly lows on August 20 at 1.3602 to touch the high at around 1.3768.
The formation of a big red candlestick in the previous session suggests bears are in full swing.
If price breaks the session’s low, it could move lower toward the 1.3650 horizontal support level followed by the low of August 23 at 1.3612.
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 monthly low made on July 20 at 1.3572.
Alternatively, if price moves higher, GBP/USD could touch the 1.3750 horizontal resistance level followed by the high of August 18 at 1.3786.
Next, the market participants will encourage to touch the 1.3820 horizontal resistance level.
GBP/USD additional levels
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.
