GBPUSD remains pressured around mid-April lows, down for the fifth consecutive day, amid early Monday. Although oversold RSI conditions recently probe the cable bears, a clear downside break of 100-day SMA and an ascending support line, now resistance, from January 18 favor the pair bears. Hence, a horizontal area comprising March-April lows surrounding 1.3670 remains on the traders’ radar before directing the sellers toward 61.8% Fibonacci retracement of December-June upside near 1.3560. It’s worth observing that the lows marked during mid-February and early March, close to 1.3775, can act as immediate support.
Meanwhile, corrective pullback needs validation from the previous support line from early 2021 around 1.3855 to challenge the 100-day SMA level of 1.3940. During the quote’s run-up beyond 1.3940, the 1.4000-4010 area and multiple levels around 1.4085 can test the GBPUSD bulls. It should, however, be noted that the bullish impulse remains challenged until the quote refreshes the yearly high beyond 1.4248 on a daily closing basis.
Meanwhile, corrective pullback needs validation from the previous support line from early 2021 around 1.3855 to challenge the 100-day SMA level of 1.3940. During the quote’s run-up beyond 1.3940, the 1.4000-4010 area and multiple levels around 1.4085 can test the GBPUSD bulls. It should, however, be noted that the bullish impulse remains challenged until the quote refreshes the yearly high beyond 1.4248 on a daily closing basis.