- GBP/USD takes offers to renew multi-day low, pokes four-month-old support line.
- MACD signals favor sellers targeting 61.8%, 78.6% FE.
- Two-month-old horizontal resistance challenges recovery moves.
GBP/USD remains pressured around the lowest level since 1985 as bears flirt with the short-term support line near 1.1310 heading into Wednesday’s London open.
In addition to the aforementioned support line, close to 1.1310, the 1.1300 threshold and the oversold RSI (14) also challenge the GBP/USD bears around the multi-year low.
However, the MACD signals and the Cable pair’s successful U-turn from the two-month-long horizontal hurdle, around 1.1750 by the press time, keep the pair sellers hopeful.
That said, the quote’s further downside hinges on its ability to conquer the nearby resistance support, as well as break the 1.1300 round figure.
Following that, the 61.8% and 78.6% Fibonacci Expansion (FE) of the GBP/USD pair’s August 17 to September 13 moves, respectively near 1.1280 and 1.1165, will be in focus.
Alternatively, the corrective bounce may aim for 1.1450 and 1.1600 resistances before challenging the aforementioned horizontal hurdle surrounding 1.1750.
If at all the GBP/USD buyers keep reins past 1.1750, the late August swing high near 1.1900 and the 1.2000 psychological magnet will be in focus.
Overall, GBP/USD remains on the bear’s radar but the downside appears limited.
GBP/USD: Daily chart
Trend: Limited downside expected