GBPUSD Price Analysis: Slides towards 1.1400 support confluence
- GBPUSD holds lower ground near intraday low, snaps two-day uptrend.
- RSI conditions favor the pullback from weekly resistance line.
- One-week-old ascending trend line, 100-SMA restrict short-term downside.
- Bulls have a bumpy track road, September’s peak is the key hurdle.
GBPUSD prints the first daily loss in three around 1.1485 during early Tuesday morning in London. In doing so, the Cable pair treats from a downward-sloping resistance line from October 27.
Given the RSI retreat supporting the quote’s latest weakness, the bears are likely to keep the reins for a while.
As a result, a convergence of the 100-SMA and a one-week-long support line, near 1.1410, gains the market’s attention. Also acting as the downside filter is the 1.1400 round figure.
In a case where the GBPUSD price declines below 1.1400, the 50% and 61.8% Fibonacci retracements of the pair’s October 12-26 upside, respectively near 1.1285 and 1.1200, could challenge the bears.
It’s worth noting that an upward-sloping trend line from October 13, close to 1.1190 at the latest, appears the last defense of the GBPUSD bulls.
Alternatively, an upside clearance of the stated resistance line, close to 1.1535 by the press time, has multiple hurdles near 1.1570, 1.1630 and 1.1650 that could challenge the GBPUSD buyers.
Above all, the quote remains on the bear’s radar unless crossing September’s peak of 1.1738.
GBPUSD: Four-hour chart
Trend: Limited downside expected