GBP/USD Price Analysis: Recovery remains doubtful below 200-DMA
- GBP/JPY keeps bounce off February lows, picks up bids of late.
- Poised for further downside as bearish MACD backs monthly support line, 200-DMA breaks.
- September 2020 peak, yearly low on bears’ radars.
GBP/USD picks up bids to 1.3630, consolidate losses around a five-month low, amid Wednesday’s Asian session. In doing so, the cable pair confronts previous support stretched from June while keeping the downside break of 200-DMA amid bearish MACD.
Given the little distance from the key support and a lack of trend reversal suggesting catalysts, the quote is likely to extend the south-run towards the yearly low of 1.3451.
However, September 2020 high near 1.3480 can offer an intermediate halt during the fall whereas fresh selling could take place below the latest low, also teased in February surrounding 1.3570-65.
Meanwhile, a clear break of the previous support line near 1.3640 won’t recall the GBP/USD buyers as a 200-DMA level of 1.3705 could test the bulls.
Also likely to challenge the recovery movement is the May month’s low near 1.3800 and the monthly high close to 1.3910.
Overall, GBP/USD bears are catching a breather but not out of the woods.
GBP/USD: Daily chart
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July 20, 2021 at 04:42PM