- June 3, 2021
- Posted by: Analysis Team
- Category: Forex News
- GBP/USD struggles to extend late Wednesday’s recovery inside a bearish chart pattern.
- Downbeat Momentum and placing of wedge near multi-month top keep sellers hopeful.
- Seven-week-old rising trend line, 200-SMA add to the downside filters.
GBP/USD eases to 1.4168 while portraying a subdued Thursday in Asia, following a bounce off the short-term key support. The cable pair’s failures to keep the recovery moves inside a bearish formation join downbeat Momentum line to back the sellers.
Hence, a downside break of 1.4135 trend line support will be a good favor to the GBP/USD bears.
However, 200-SMA and an ascending trend line from April 12, respectively around 1.4040 and 1.4020, will act as an intermediate halt during the theoretical drop towards May’s low near 1.3800.
Meanwhile, recovery moves will have multiple hurdles around 1.4220-25 before challenging the latest high near 1.4245.
During the quote’s run-up beyond 1.4245, the stated wedge’s upper line close to 1.4255 will be a validating point to the further rally targeting early 2018 levels beyond 1.4300.
GBP/USD FOUR-HOUR CHART