GBP/USD Price Analysis: Licks wounds near 11-week low with limited upside potential

GBP/USD snaps two-day downtrend, picks up bids from multi-day low.
Oversold RSI triggered corrective pullback but nearby resistance line, 10-DMA limits recovery moves.
Multiple levels marked during late 2021 offer strong support to challenge bears.
Bulls remain unconvinced below the 1.3415 horizontal resistance area.

Anil Panchal FXStreet

GBP/USD consolidates the biggest weekly loss since November around 1.3235-40 during Monday’s Asian session.

The pair dropped to the lowest levels in 11 weeks by the end of Friday but oversold RSI triggered the cable pair’s corrective pullback.

However, a downward sloping trend line from February 23 and the 10-DMA, respectively around 1.3315 and 1.3355, test the rebound.

Even if the quote rises past 1.3355, a horizontal area comprising multiple levels since September 2021, around 1.3515, will be a tough nut to crack for the GBP/USD buyers.

Alternatively, the fresh downside will aim for the 1.3200 threshold before hitting a block near the 1.3160-70 zone that includes late 2021 levels.

In a case where GBP/USD drops below 1.3160, the 1.3100 round figure holds the key to the pair’s slump towards the 1.3000 psychological magnet.

Overall, GBP/USD is likely to consolidate some more losses before activating the further downside.

GBP/USD: Daily chart

Trend: Limited recovery expected

Additional important levels

Overview
Today last price	1.3239
Today Daily Change	-0.0010
Today Daily Change %	-0.08%
Today daily open	1.3249

Trends
Daily SMA20	1.3492
Daily SMA50	1.3522
Daily SMA100	1.3486
Daily SMA200	1.3653

Levels
Previous Daily High	1.3354
Previous Daily Low	1.3202
Previous Weekly High	1.3438
Previous Weekly Low	1.3202
Previous Monthly High	1.3644
Previous Monthly Low	1.3273
Daily Fibonacci 38.2%	1.326
Daily Fibonacci 61.8%	1.3296
Daily Pivot Point S1	1.3183
Daily Pivot Point S2	1.3116
Daily Pivot Point S3	1.3031
Daily Pivot Point R1	1.3335
Daily Pivot Point R2	1.3421
Daily Pivot Point R3	1.3487

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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