GBP/USD Price Analysis: Eases above 1.3700 on downbeat Momentum

  • GBP/USD fades upside momentum, edges higher of late.
  • Previous resistance from March lures sellers on descending Momentum line.
  • Multiple hurdles to the north to challenge the bulls.

GBP/USD bulls take a breather after a two-day uptrend, refresh intraday low near 1.3725 amid Wednesday’s Asian session.

The cable pair crossed a five-month-old horizontal hurdle on Monday but slowed down afterward as the Momentum line remains in the negative territory. Also challenging the pair bulls is the multiple hurdles, namely a four-month-long horizontal area, 200-DMA and a monthly resistance line.

Hence, odds of the pair’s pullback towards the resistance-turned-support zone near 1.3670-65 gain popularity among sellers. Though, an upward sloping trend line from July 30, around 1.3600, could challenge GBP/USD bears afterward.

It’s worth noting that the 1.3700 and July’s low near 1.3570 offers additional downside filters to the quote.

Alternatively, a broad resistance area between 1.3785 and 1.3800, comprising 200-DMA and multiple levels marked since late April, challenges the short-term GBP/USD upside.

Even if the pair buyers manage to cross the 1.3800 hurdle, a descending trend line from July 30, near 1.3815, will act as a validation point for the further upside.

GBP/USD: Daily chart

Trend: Pullback expected

Additional important levels

Overview
Today last price 1.3726
Today Daily Change 0.0005
Today Daily Change % 0.04%
Today daily open 1.3721

 

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