GBPUSD faces uphill task to extend the latest rebound
GBPUSD remains inside an eight-day-old bullish channel, as well as the 100-SMA, suggesting further upside. However, the 200-SMA and a downward sloping resistance line from August 26, respectively around 1.1430 and 1.1480, appear tough nuts to crack for the pair buyers. Also challenging the north-run is the RSI conditions which gradually approach the overbought territory. Even if the quote crosses the 1.1480 resistance, the aforementioned channel’s resistance line, near 1.1670, could challenge the cable buyers.
Alternatively, the stated channel’s support line and the 100-SMA, around 1.1280 and 1.1200 in that order, act as the trigger for GBPUSD’s fresh selling. Following that, tops marked during late September, around 1.0930-15, could lure the bears. In a case where the prices remain weak past 1.0915, the year 1985 low near 1.0520 and the record low marked in the last month around 1.0345, will regain the market’s attention.
Overall, GBPUSD fades upside momentum but the bears need to justify their strength to retake control.
