GBP/USD Price Analysis: Teases bearish cross below 1.3900 on BOE Super Thursday

GBP/USD remains pressured after declining from weekly top.
50-DMA signals decline below 100-DMA amid receding bullish bias of MACD, steady RSI.
DMA confluence, two-month-old horizontal area act as strong resistances.
Bears could aim for June’s low if welcomed.

Anil Panchal FXStreet

After posting the heaviest fall in a week, not to forget reversing from the weekly top, GBP/USD holds lower ground near 1.3885 during Thursday’s Asian session.

The cable pair traders remain cautious ahead of today’s Bank of England (BOE) monetary policy announcements while seeking clues of tapering and rate hikes. However, the Delta covid variant fears challenge the policymakers at the “Old Lady”.

Read: Bank of England Preview: Five reasons the doves are set to win Super Thursday, GBP/USD may dip

In addition to the “Super Thursday” event, an impending bearish cross of 50-DMA to the 100-DMA also tests the GBP/USD traders. It should be noted that steady RSI line and receding bullish MACD histograms tease sellers.

Hence, sustained trading below the weekly bottom surrounding 1.3875 will be required to confirm the bearish DMA pattern and drag the quote towards June’s low of 1.3786.

However, one-month-old horizontal support near 1.3740-20 could restrict the pair’s downside afterward.

Meanwhile, recovery moves will be initially challenged by a convergence of the said Daily Moving Averages (DMAs) around 1.3925 before directing the pair buyers towards 1.3985–4010 broad area comprising multiple levels marked since early May.

If at all the GBP/USD bulls cross 1.4010 on a daily closing basis, backed by hawkish BOE, the 1.4100 threshold will be next on their radar.

GBP/USD: Daily chart

Trend: Further weakness expected

Additional important levels

Overview
Today last price	1.3887
Today Daily Change	-0.0028
Today Daily Change %	-0.20%
Today daily open	1.3915

Trends
Daily SMA20	1.3822
Daily SMA50	1.3937
Daily SMA100	1.3924
Daily SMA200	1.3744

Levels
Previous Daily High	1.3939
Previous Daily Low	1.3882
Previous Weekly High	1.3984
Previous Weekly Low	1.3737
Previous Monthly High	1.3984
Previous Monthly Low	1.3572
Daily Fibonacci 38.2%	1.3917
Daily Fibonacci 61.8%	1.3903
Daily Pivot Point S1	1.3885
Daily Pivot Point S2	1.3855
Daily Pivot Point S3	1.3828
Daily Pivot Point R1	1.3942
Daily Pivot Point R2	1.3969
Daily Pivot Point R3	1.3999

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.

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