GBP/USD Price Analysis: Bears keep 1.3280 on the radar
- GBP/USD picks up bids to fill the week-start gap.
- 61.8% Fibonacci retracement guards immediate upside ahead of previous support line.
- Bearish MACD, descending RSI line joins sustained trading below key support to favor sellers.
- 100-DMA adds to the upside filters, 78.6% Fibonacci retracement level lures bears.
GBP/USD struggles to full the 60 pips of the bearish gap around 1.3370 during the initial Asian session on Monday.
GBP/USD snapped a three-week uptrend by the end of Friday’s trading as the market’s risk-off mood favored the US dollar bulls.
Apart from the fundamentals that favor the GBP/USD bears, a clear downside break of an ascending trend line from December 08, 2021, around 1.3480 by the press time, also hints at the pair’s further declines.
That said, the 61.8% Fibonacci retracement (Fibo.) of December-January upside, near 1.3380, restricts the pair’s immediate recovery ahead of the 50% Fibo. level and the support-turned-resistance line, respectively around 1.3450 and 1.3480.
Even if the GBP/USD buyers manage to cross the 1.2480 hurdle, they need to provide a daily closing beyond the 100-DMA level surrounding 1.3500 to recall the buyers.
Meanwhile, the 1.3300 round figure may offer immediate support to the pair, a break of which will recall GBP/USD bears targeting the 78.6% Fibonacci retracement level near 1.3280.
In a case where GBP/USD remains bearish past 1.3280, the December 2021 low near 1.3160 will be in focus.
GBP/USD: Daily chart
Trend: Further weakness expected