GBP/USD Price Analysis: Stays pressured below 1.3700 as MACD teases bears
- GBP/USD holds lower ground after printing the heaviest daily fall in a month.
- Clear break of 50-DMA, monthly ascending trend line favor sellers.
- Key Fibonacci retracements, October’s high add to the upside filters.
GBP/USD remains depressed around a fortnight low, despite refraining to break Friday’s low surrounding 1.3670. In doing so, the cable pair keeps the previous day’s downside break of 50-DMA, as well as 50% Fibonacci retracement (Fibo.) of July-September downside, during the initial Asian session on Monday.
In addition to the 50-DMA break, a clear south-run past an ascending trend line from late September and MACD conditions also keep the pair sellers hopeful.
Hence, the quote’s further weakness towards early October levels surrounding 1.3650 becomes imminent. However, August month’s low around the 1.3600 round figure and the mid-October’s swing bottom near 1.3570 may challenge the GBP/USD bears afterward.
Should the quote drop past 1.3570, 23.6% Fibo. near 1.3545 will be in the spotlight.
Meanwhile, 50% Fibonacci retracement level and 50-DMA, respectively around 1.3700 and 1.3715, question the GBP/USD pair’s corrective pullback.
Following that, the 61.8% Fibo. and the support-turned-resistance line, 1.3765 and 1.3825 in that order, will precede the last month’s peak of 1.3833 to stop the pair buyers.
To sum up, GBP/USD bears tighten the grips after Friday’s firmer signal towards the south.
GBP/USD: Daily chart
Trend: Further weakness expected
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.
