Bears attack weekly support around 1.3150
- GBP/USD remains under pressure around the week-old ascending support line.
- Bearish MACD signals, failures to break through 1.3190-3200 resistance area favor sellers.
- 50-SMA adds to bearish filters, bulls should be validated from 1.3275.
GBP/USD remains depressed for the second day in a row, down 0.12% intraday around 1.3150 early Tuesday morning in Europe.
The latest weakness in the Cable pair could relate to multiple failures to clear the 100-SMA and a 12-day-old horizontal resistance zone around 1.3190-3200, as well as bearish MACD signals.
It should be noted that an ascending trendline from last Tuesday around 1.3145 defies the pair’s immediate decline. The 50-SMA level of 1.3108 is also testing the GBP/USD bears.
In a case where GBP/USD drops below 1.3108, also broke through the 1.3100 threshold, the monthly low surrounding the psychological magnet of 1.3000 will be in focus.
On the other hand, recovery moves remain elusive below 1.3200, a break of which will direct GBP/USD buyers towards the horizontal line comprising lows seen in late February and early March near 1.3275.
During the move higher above 1.3275, the 200-SMA and 61.8% Fibonacci retracement of the February-March decline around 1.3365 and 1.3400, respectively, should attract pair buyers.
GBP/USD: four-hour chart
Trend: further weakness expected