- GBP/USD remains pressured towards the key moving average, keeping Friday’s pullback.
- Steady RSI, failures to cross 21-DMA, 61.8% Fibonacci retracement favor sellers.
- Bulls remain worried until witnessing upside break of 1.3630.
GBP/USD stays depressed around 1.3530, keeping the previous day’s pullback moves during Monday’s Asian session.
In doing so, the cable pair remains below 21-DMA and the 61.8% Fibonacci retracement (Fibo.) level of October-December 2021 downside.
Given the steady RSI and the pair’s inability to stay beyond the key resistances, the latest declines are likely to extend towards the nearby support, namely the 100-DMA level surrounding 1.3510 and the 1.3500 threshold.
It’s worth noting that a broad support area between 1.3470 and 1.3430, comprising multiple levels marked since early November 2021, will challenge the GBP/USD to bear past 1.3500.
Should the quote drop below 1.3500, a three-month-old horizontal line near 1.3360-55 may lure the pair sellers.
Alternatively, the 21-DMA and 61.8% Fibo. level guard short-term recovery of the GBP/USD pair around 1.3555 and 1.3580.
Following that, February’s top around 1.3630 will act as a last defense for the bears before directing the quote to a downward sloping trend line from October 2021, around 1.3720.
GBP/USD: Daily 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
EUR/USD: Is the US Dollar corrective decline over? Premium
The EUR/USD pair ended a three-week losing streak, recovering towards 1.0600 before finally finding sellers. The US Dollar (USD) gapped lower at the weekly opening after reaching fresh 2024 highs against its European rival, with EUR/USD bottoming at 1.0332 on November 22.
GBP/USD: Pound Sterling rebounds, not out of the woods yet Premium
The Pound Sterling (GBP) snapped a two-week downtrend and staged a comeback against the US Dollar (USD), driving the GBP/USD pair back to the 1.2700 threshold.
Gold: Easing geopolitical tensions trigger profit-taking Premium
Gold (XAU/USD) declined sharply on easing geopolitical concerns on Monday and spent the rest of the week trying to recover its losses. Employment-related macroeconomic data releases from the US could alter the expectations about the Federal Reserve’s policy decision in December and trigger the next big action in XAU/USD.
Bitcoin: A healthy correction
Bitcoin (BTC) experienced a 7% correction earlier in the week, dropping to $90,791 on Tuesday before recovering to $97,000 by Friday. On-chain data suggests a modest rebound in institutional demand, with holders buying the dip. A recent report indicates BTC remains undervalued, projecting a potential rally toward $146K.
US Dollar flat ahead of weekend full of uncertainties over France's budget
The US Dollar (USD) is recovering with the US trading session opening on Black Friday. The rally in the Euro which was weighing on the US Dollar and the US Dollar Index (DXY), is fading at the start of the US trading session.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.