GBP/USD Price Analysis: Vulnerable to further downside below 1.3700

GBP/USD struggles to rebound from seven week low.
Downbeat RSI, not oversold, joins sustained break of key trend line, SMA to favor sellers.
Bulls need fresh monthly high for conviction, 100-day SMA, nine-month-old support line lure bears.

Anil Panchal FXStreet

Following its failures to recover from early-February lows, GBP/USD holds lower ground near 1.3690 during Thursday’s Asian session. The cable dropped to the multi-day low the previous day while extending the early week breakdown of 50-day SMA and an ascending support line from January 11, 2021.

Given the downward sloping RSI having a gap to the south before hitting the oversold alarm, the GBP/USD prices suggest further downside.

Hence 100-day SMA level of 1.3622 gains the short-term sellers’ attention ahead of an upward sloping trend line from June 29, 2020, at 1.3551.

It should, however, be noted that the quote’s sustained trading below 1.3550 seems less likely as the RSI might have turned oversold by then and the same can trigger corrective pullback of the quote.

Meanwhile, GBP/USD recovery moves should initially cross the immediate resistance line, previous support near 1.3800 threshold, before confronting the 50-day SMA level of 1.3828.

If at all the sterling buyers manage to cross the 1.3830 hurdle, a monthly top surrounding 1.4020 will be the key to watch.

GBP/USD daily chart

Trend: Bearish

Additional important levels

Overview
Today last price	1.3687
Today Daily Change	0.0000
Today Daily Change %	0.00%
Today daily open	1.3687

Trends
Daily SMA20	1.3896
Daily SMA50	1.3828
Daily SMA100	1.3617
Daily SMA200	1.3252

Levels
Previous Daily High	1.3759
Previous Daily Low	1.3674
Previous Weekly High	1.4002
Previous Weekly Low	1.3809
Previous Monthly High	1.4243
Previous Monthly Low	1.3566
Daily Fibonacci 38.2%	1.3707
Daily Fibonacci 61.8%	1.3727
Daily Pivot Point S1	1.3655
Daily Pivot Point S2	1.3622
Daily Pivot Point S3	1.357
Daily Pivot Point R1	1.374
Daily Pivot Point R2	1.3792
Daily Pivot Point R3	1.3825

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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