While major currency pairs dropped notably the previous day, as Fed tapering concerns propelled the US dollar, the GBPUSD remained far from bear’s reach despite refreshing weekly low. The reason could be linked to a one-month-old rising channel. The cable pair teases the channel’s support, surrounding 1.3785, by the press time of early Friday. Even if the quote drops below 1.3785 an upward sloping support line from August 27, near 1.3760, will challenge the pair sellers before directing them to the 61.8% Fibonacci retracement level of July’s upside at 1.3730.
Meanwhile, recovery moves need to overcome 1.3850 to battle multiple hurdles around 1.3890-95. Also acting as an upside filter is the 1.3900 threshold. Should GBPUSD bulls manage to cross 1.3900, August month’s high near 1.3960 and July’s peak surrounding 1.3980 can act as buffers prior to highlighting the 1.4000 psychological magnet for the buyers. It should be noted that RSI rebound and sluggish MACD also rejects the pair bears.