GBPUSD Price Analysis: Retreats from two-month-old resistance towards 1.1500
- GBPUSD takes offers to refresh intraday low, snaps three-day uptrend around a one-week high.
- 50-DMA, monthly support line challenge bears amid upbeat oscillators.
- Buyers need validation from 100-DMA to keep the reins.
GBPUSD bears return to the table, after a three-day absence, as the Cable pair renews its intraday low near 1.1530 during Wednesday’s Asian session.
In doing so, the quote takes a U-turn from a downward-sloping resistance line from early September.
However, the bullish MACD signals and steady RSI (14) join the pair’s successful trading above the 50-DMA, around 1.1330 at the latest, to keep the buyers hopeful.
Even if the quote breaks the 1.1330 support, a one-month-old ascending trend line, near 1.1190 by the press time, could challenge the GBPUSD bears.
Following that, a slump toward the monthly low near 1.1150 and then to October’s trough surrounding 1.0925 can’t be ruled out.
Meanwhile, an upside clearance of the aforementioned immediate resistance line near 1.1600 isn’t an open invitation to the GBPUSD bulls as the 100-DMA level of 1.1672 acts as the last defense of the bears.
Should the quote stays firmer past 1.1672, September’s high around 1.1740 and tops marked during late August, surrounding 1.1900, will gain the market’s attention.
Overall, GBPUSD is likely to witness a pullback but the bears are far from taking control.
GBPUSD: Daily chart
Trend: Limited downside 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.
