Technical Analysis: GBPUSD bears stay hopeful below key support line

Technical Analysis: GBPUSD bears stay hopeful below key support line

Although 100-SMA defends cable buyers, bearish MACD and hopes of the US dollar’s further recovery, following the $1.9 trillion covid stimulus, seem to favor the GBPUSD sellers. As a result, the bears should wait for a clear downside break of 1.3915 to initial fresh selling positions. Following that, 1.3780-75 and the previous month’s low of 1.3563 will be in the spotlight. Overall, the Sterling has run a long way up versus the US dollar and bright spots are suggesting a fresh downside wave during the key week comprising the UK’s budget.

On the contrary, 50-bar SMA and an upward sloping trend line from February 04, respectively around 1.4015 and 1.4040, guard the quote’s immediate upside. Also acting as the hurdle is a one-week-old horizontal area surrounding 1.4080. If at all the GBPUSD bulls manage to cross 1.4080, odds of witnessing a fresh high beyond the latest ones 1.4237 can’t be ruled out.

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