- 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.
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
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD recovers toward 1.0600 on renewed USD weakness
EUR/USD regains its traction and rises toward 1.0600 after spending the early European session under pressure. The renewed US Dollar (USD) weakness following disappointing housing data helps the pair push higher, while markets keep a close eye on geopolitics.
GBP/USD stays near 1.2650 after BoE Governor Bailey testimony
GBP/USD trades in the red at around 1.2650 on Tuesday. Although BoE Governor Bailey said a gradual approach to removing policy restraint will help them observe risks to the inflation outlook, the sour mood doesn't allow the pair to gather recovery momentum.
Gold extends recovery toward $2,640 as geopolitical risks intensify
Gold price builds on Monday's gains and rises toward $2,640 as risk-aversion grips markets amid intensifying geopolitical tensions between Russia and Ukraine. Meanwhile, the 10-year US Treasury bond yield is down more than 1% on the day, further supporting XAU/USD.
Bitcoin Price Forecast: Will BTC reach $100K this week?
Bitcoin (BTC) edges higher and trades at around $91,600 at the time of writing on Tuesday while consolidating between $87,000 and $93,000 after reaching a new all-time high (ATH) of $93,265 last week.
How could Trump’s Treasury Secretary selection influence Bitcoin?
Bitcoin remained upbeat above $91,000 on Tuesday, with Trump’s cabinet appointments in focus and after MicroStrategy purchases being more tokens.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.