GBPUSD braces for further downside, 1.0930-20 eyed immediately
GBPUSD holds onto the previous week’s downside break of the 50-SMA and a two-week-old support line, now resistance around 1.1160. Although the nearly oversold RSI suggests limited room towards the south, the bearish MACD signals keep the bears hopeful. That said, a horizontal area comprising the lows marked during late September, around 1.0930-20, lures intraday sellers. Following that, 1.0630 may offer an intermediate halt before directing the bears towards the record low printed in the last month around 1.0345.
Alternatively, any recovery appears elusive unless the GBPUSD pair remains below 1.1160. Even if the cable pair crosses the 1.1160 hurdle the 61.8% Fibonacci retracement of late August-September downside, near 1.1320, will check the buyers. It should be noted that a downward-sloping resistance line from August 26, close to 1.1450 by the press time, seems the last defense of the bears, a break of which could trigger a short-term bullish trend.
Overall, GBPUSD is on the way to the all-time low marked in the last month. However, the bears need validation from 1.0920 and the UK jobs report scheduled for publishing today.
