- GBP/USD remains sidelined after a sluggish start to the week.
- Downbeat Momentum line backs 50-DMA crossing under 200-DMA and suggesting further downside.
- Three-month-old descending trend line adds to the upside filters.
GBP/USD keeps the week-start inactivity around the mid 1.3700s during Tuesday’s Asian session. Even so, bears remain hopeful as the Daily Moving Averages (DMAs) hint at a bearish cross as the prices remain below an important resistance line stretched from June 01.
It’s worth noting that a descending Momentum line also backs the GBP/USD sellers who await a daily closing below the 1.3700 threshold to confirm the pair’s further weakness.
Given the quote’s downside past 1.3700, the 50-DMA will drop below 200-DMA and suggest the pair’s further declines towards the monthly low near 1.3600. However, any further downside will be challenged by a seven-month-old horizontal support area surrounding 1.3570-65.
Meanwhile, the 1.3800 round figure can entertain GBP/USD buyers during fresh upside. Though, the stated DMAs near 1.3810-15 may challenge the pair’s upside afterward.
Even if the quote rises past 1.3815, the multi-day-old resistance line near 1.3850 will be a tough nut to crack for the buyers ahead of targeting the late July tops near 1.3985.
GBP/USD: Daily chart
Trend: Further weakness expected