- GBP/USD holds lower ground, fading the bounce off monthly low.
- Pullback from 50-SMA, easing bullish bias of MACD favor sellers.
- Five-week-old support line, previous resistance from mid-September offer key support.
GBP/USD stays pressured around 1.3670 during the early Asian session on Monday. The cable pair kept Thursday’s pullback from 50-SMA to contribute towards a three-week downtrend by the end of Friday.
In addition to the failures to cross a short-term moving average, the signal line of the MACD teasing a bear cross and also adds to the expectations of witnessing the pair’s further downside.
However, a confluence of an ascending trend line from August 20 and the previous resistance line from September 14, around 1.3600 becomes a tough nut to crack for the GBP/USD sellers.
Should the pair bears keep reins past 1.3600, lows marked during February and July, near 1.3570-65, add to the downside filters.
Meanwhile, a corrective pullback will be immediately challenged by the 50-SMA hurdle of 1.3720, a break of which will highlight 200-SMA near 1.3765.
In a case where GBP/USD bulls manage to cross the 1.3765 resistance, the 1.3800 threshold will be crucial for the cable pair’s further advances.
GBP/USD: Four-hour chart
Trend: Further weakness expected
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