GBP/USD Price Analysis: Bears firming up the grip below 1.3100

  • GBP/USD stays depressed following the break of an eight-day-old rising trend line.
  • Failures to cross March month’s high, lower high formation favor sellers.
  • Bulls seek a clear break of 1.3200 to extend the previous upside.

GBP/USD eases to 1.3070 during Tuesday’s Asian session. The Cable prints the third day of losses after it took a U-turn from March top during Friday. The weakness takes clues from a recent break below a short-term ascending trend line stretched from July 23.

The pair currently targets to revisit 1.3000 round-figure comprising horizontal support, a break of which could direct the sellers towards a 200-HMA level of 1.2925.

However, any more downside past-1.2925 will make the quote vulnerable to test 61.8% Fibonacci retracement level of July 22-31 upside, at 1.2845.

Meanwhile, the support-turned-resistance near 1.3106 limits the pair’s immediate upside ahead of the March month’s top close to 1.3200.

In a case where the bulls dominate past-1.3200, there are multiple resistances to tackle before attacking the yearly top surrounding 1.3285.

GBP/USD hourly chart

Trend: Pullback expected

 

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