Technical Analysis: GBPUSD is grinding lower towards the key support line
Despite bouncing off a one-week low, GBPUSD has a bumpy road to recovery. Not only horizontal hurdles from early March but bearish MACD signals also suggest the cable’s further downside. However, a clear downside break below the ascending trend line from February 04, around 1.3700, becomes necessary for the pair to convince the bears. Following that, the previous month’s low around 1.3670 and February’s bottom close to 1.3565 will be the key to watch.
Meanwhile, recovery moves can eye multiple levels from March 08, between 1.3795 and 1.3805, as an immediate target. Following that the monthly peak surrounding 1.3920 can test the GBPUSD bulls ahead of highlighting another horizontal resistance area stretched from March, around 1.3990–1.4000. It should, however, be noted that the pair’s sustained run-up beyond the 1.4000 psychological magnet will be enough for the sterling buyers to aim for the yearly top of 1.4237.