GBP/USD Price Analysis: Bears flirt with five-month-old support near 1.3800

  • GBP/USD stays pressured after reversing from monthly high.
  • Sustained trading below 100-SMA, absence of oversold RSI back the bears.
  • 200-DMA lures bears, March-April lows add strength to the support.

GBP/USD bears take a breather around 1.3800, following a U-turn from the one-week top, amid Wednesday’s Asian session. In doing so, the cable takes rounds to an ascending support line from early February.

Given the room between the RSI’s current condition and oversold levels, not to forget the pair’s failure to keep bounce off the stated support line, GBP/USD bears remain hopeful to visit the 1.3670-60 support-zone, comprising 200-DMA and lows marked during March and April.

During the fall, the monthly low, also the lowest since mid-April, near 1.3730, will precede the 1.3700 threshold to entertain short-term sellers.

Alternatively, the recent high around 1.3900 and the 100-DMA level close to 1.3950 challenge the quote’s corrective bounce ahead of the 1.4000 psychological magnet.

Even if the GBP/USD prices cross the 1.4000 hurdle, bulls need a clear break of the 1.4010 level to aim for early June lows surrounding 1.4085.

GBP/USD: Daily chart

Trend: Further weakness expected 

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