GBP/USD Price Analysis - Bears keep 1.3280 under the radar

USD/GBP bids for the week-start gap.

GBP/USD Price Analysis - Bears keep 1.3280 under the radar
  • 61.8% Fibonacci Retracement protects immediate upside ahead the previous support line

  • Bearish MACD and descending RSI lines joins sustained trading below the key support for favor sellers.

  • 100 DMA increases the upside filters. 78.6% Fibonacci level lures bears.

The GBP/USD struggled to close the 60-pips bearish gap at 1.3370 on Monday's initial Asian session.

GBP/USD jumped three weeks in a positive trend by Friday's trading, as the market's risk-off mood favors the US dollars bulls.

The fundamentals favor GBP/USD bears. However, a clear downside break in an ascending trendline from December 08 2021 (around 1.3480 at the press time) also suggests further declines.

However, the 61.8% Fibonacci Retracement (Fibo. The December-January upside of close to 1.3380 restricts the pair’s immediate recovery before the 50% Fibo. level and the support-turned-resistance line, respectively around 1.3450 and 1.3480.

To recall buyers, even if GBP/USD buyers cross the 1.2480 threshold, they must provide daily closings above the 100-DMA level around 1.3500.

The 1.3300 round number may provide immediate support for the pair. A break of this figure will remind GBP/USD bears to target the 78.6% Fibonacci level near 1.3280.

The December 2021 low at 1.3160 will be the focus in a GBP/USD bearish scenario.


 

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