GBP/USD Price Analysis: Bears look for entry below 1.2975

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  • GBP/USD fizzles upside momentum below 1.3100, still keeping the previous day’s recovery moves.
  • A confluence of 10-day EMA, an ascending trend line from April 14 is the key support.
  • Bulls will have to cross 1.3200 to regain control.

GBP/USD eases to 1.3077 during Wednesday’s Asian session. The pair fails to extend the previous day’s upside beyond 1.3087, needless to mention about its pullback from the March highs near 1.3200. Also suggesting weakness in the Cable is the overbought RSI conditions.

However, 10-day EMA and a four-month-old support line restrict the pair’s near-term downside around 1.2975, a break of which could direct sellers towards June month’s peak near 1.2815/10.

Should the quote remains downbeat past-1.2810, 1.2800 will become a validation point to anticipate the further south-run targeting the early-July tops near 1.2675/70.

Meanwhile, 1.3200 continues to become a tough nut to crack for the bulls. Though, pair’s intermediate attacks on 1.3100 and 1.3150 can’t be ruled out.

GBP/USD daily chart

Trend: Further weakness expected

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