GBP/USD Price Analysis: En route 11-week-old support around 1.3800
FXStreet News

GBP/USD Price Analysis: En route 11-week-old support around 1.3800

  • GBP/USD stands on slippery ground, drops for third consecutive day.
  • Repeated failures to cross 10-day SMA, downside break of 21-day SMA favor sellers.
  • January tops, key Fibonacci retracement levels lure the bears below the key support line.

GBP/USD bears attack weekly low while refreshing the intraday bottom with 1.3867, down 0.12% on a day, during Friday’s Asian session. In doing so, the cable extends weakness below 10-day SMA after breaking 21-day SMA the previous day.

Given the downward sloping RSI line, GBP/USD is ready to refresh the weekly low and extend the latest declines towards an ascending support line from December 21, 2020, at 1.3807 now.

However, January’s top near 1.3760-55 will challenge the quote’s further downside below the key support line, if not then 50% and 61.8% Fibonacci retracement levels of December 2020 to February 2021 upside, respectively around 1.3690 and 1.3560, should test the GBP/USD bears.

Meanwhile, pullback moves not only need to cross the 21-day SMA level of 1.3920 but should also clear the 1.3990 level comprising 10-day SMA on a daily closing to recall the GBP/USD buyers.

It’s worth mentioning that the 1.4000 threshold adds to the upside filters.

GBP/USD daily chart

Trend: Further weakness expected


FX Street

FX Street

FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions.