- 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