GBP/USD Price Analysis: Steady around yearly low inside weekly descending channel
- GBP/USD struggles to overcome the 2021 bottom, stays inside bearish chart pattern.
- MACD conditions hint at seller’s exhaustion but bulls need validation from 50-SMA, falling resistance line from November 09.
- 61.8% FE guards immediate downside amid oversold RSI conditions.
GBP/USD defends the 1.3300 threshold, taking rounds to the recently flashed yearly low during the early Asian session on Friday. In doing so, the cable stays inside a one-week-old falling trend channel.
Although the bearish channel keeps sellers hopeful, MACD and RSI conditions signal a corrective pullback targeting the channel’s upper line near 1.3340.
It’s worth noting that the quote’s upside momentum past 1.3340 need not only cross the 50-SMA level of 1.3415 but a 13-day-old falling trend line near 1.3435 to recall the GBP/USD buyers.
Following that, a run-up to the mid-November’s swing high close to 1.3515 can’t be ruled out.
Alternatively, 61.8% Fibonacci Expansion (FE) of the pair’s moves between November 03 and 18, around 1.3300 offers strong immediate support to the GBP/USD prices.
Even if the sellers manage to conquer the psychological magnet, the stated channel’s lower line may act as an extra filter to the south, around 1.3275, before directing the quote towards the 78.6% FE level of 1.3240.
GBP/USD: Four-hour chart
Trend: Corrective pullback 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.
