Range Markets

  • GBP/USD remains pressured between previous support line from April 12 and a three-week-old horizontal area.
  • Downside break of 200-SMA, sluggish Momentum back recent weakness.

GBP/USD drops back towards 1.3800, down 0.08% intraday around 1.3816 by the press time of Monday’s Asian session. Even so, the cable struggles for a clear direction inside a trading range of nearly 50-pips comprising the key horizontal support and a short-term resistance line, previous support.

The quote’s latest weakness below 200-SMA and downbeat Momentum indicator suggests another attempt to break below the mid-April tops surrounding 1.3810. However, sellers may wait for a fresh low beneath the latest 1.3802, as well as a clear break below the 1.3800 threshold, for confirmation.

Following that multiple supports around 1.3750 and 1.3720-15 can entertain GBP/USD bears ahead of directing them to the previous month’s low near 1.3669.

On the flip side, 200-SMA level of 1.3830 guards corrective pullback beneath the previous support line near 1.3845-50.

Even if the GBP/USD prices cross the 1.3850 hurdle, lows marked during the last week around 1.3860 act as extra upside filters before highlighting the 1.3930 resistance for the buyers.


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