GBP/USD Price Analysis: Sellers need validation from 100-DMA

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.

Anil Panchal FXStreet

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

Additional important levels

Overview
Today last price	1.3533
Today Daily Change	0.0002
Today Daily Change %	0.01%
Today daily open	1.3531

Trends
Daily SMA20	1.356
Daily SMA50	1.3436
Daily SMA100	1.3511
Daily SMA200	1.3712

Levels
Previous Daily High	1.3615
Previous Daily Low	1.3505
Previous Weekly High	1.3628
Previous Weekly Low	1.3387
Previous Monthly High	1.3749
Previous Monthly Low	1.3358
Daily Fibonacci 38.2%	1.3547
Daily Fibonacci 61.8%	1.3573
Daily Pivot Point S1	1.3486
Daily Pivot Point S2	1.344
Daily Pivot Point S3	1.3375
Daily Pivot Point R1	1.3596
Daily Pivot Point R2	1.366
Daily Pivot Point R3	1.3706

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.

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

Editor's Picks

EUR/USD falls toward 1.1700 on broad USD recovery

EUR/USD turns south and declines toward 1.1700 on Wednesday. The US Dollar gathers recovery momentum and forces the pair to stay on the back foor, as traders look to USD short-covering ahead of US inflation report on Thursday. However, the downside could be capped by hawkish ECB expectations.

GBP/USD trades deep in red below 1.3350 after soft UK inflation data

GBP/USD stays under strong selling pressure midweek and trades below 1.3350. The UK annual headline and core CPI rose by 3.2% each, missing estimates of 3.5% and 3.4%, respectively, reaffirming dovish BoE expectations and smashing the Pound Sterling across the board ahead of Thurday's BoE policy announcements.

Gold clings to moderate daily gains above $4,300

Following Tuesday's volatile action, Gold regains its traction on Wednesday and trades in positive territory above $4,300. While the buildup in the USD recovery momentum caps XAU/USD's upside, the cautious market stance helps the pair hold its ground.