- June 17, 2021
- Posted by: Analysis Team
- Category: Forex News
- GBP/USD remains pressured around six-week low, stays under the key 1.4010-4000 area.
- Further losses envisioned on support break, bearish MACD.
- 100-day SMA offers immediate support ahead of one-year-old rising trend line.
GBP/USD stays depressed around 1.3990 after dropping the most since April-end, not to forget testing early May levels, during the initial Asian session trading on Thursday. The cable pair’s Fed-led slump broke the three-month-old horizontal support around 1.4010-4000. The bearish sentiment also gains support from the downbeat MACD signals.
Read: GBP/USD bears jump on Fed’s switch to hawkish on inflation risks, target 1.3980
That said, GBP/USD seller aim for a 100-day SMA level near 1.3935 during the further downside but an ascending support line from May 2020, near 1.3900, could challenge the bears afterward.
In the case where the quote drops below 1.3900, April-end lows near 1.3800 should return to the charts.
Meanwhile, corrective pullback beyond 1.4010 needs to cross the multiple supports, now resistances, marked from late May around 1.4090 to keep the buyers hopeful.
Additionally, the 1.4100 threshold, 1.4185 and the monthly high near 1.4250 could challenge the GBP/USD bulls afterward.
Overall, GBP/USD suggests further downside the break of near-term key support another one on the line may test the bears soon.
GBP/USD DAILY CHART