- GBP/USD keeps pullback from weekly top, grinds lower of late.
- Downside break of 50-SMA, sluggish Momentum keep sellers hopeful.
- 200-DMA adds to the upside filters, 200-SMA restricts short-term downside.
GBP/USD remains on the back foot around 1.3765, keeping the weekly trading range during Wednesday’s Asian session. In doing so, the cable pair inches closer to an ascending support line from September 29.
Given the sluggish Momentum and the quote’s latest break below the 50-SMA, the sellers are sneaking in for entries. However, the weekly trading range and the stated support line, respectively around 1.3750 and 1.3740, restrict the short-term declines.
Should GBP/USD bears manage to conquer the aforementioned supports, 200-SMA near 1.3685 will challenge the further downside.
Alternatively, an upside break of 50-SMA, around 1.3770 by the press time, will redirect the GBP/USD buyers toward the recent range resistance, near 1.3835.
Though, the 200-DMA level surrounding 1.3855 on the daily chart becomes a tough nut to crack for the bulls afterward, a break of which will challenge the previous month’s top near 1.3915.
GBP/USD: Four-hour chart
Trend: Further downside expected
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