- GBP / USD eased losses on Tuesday after yesterday’s rout.
- Price shows resistance near 1.3650, lacking conviction for a strong bullish move.
- The Momentum oscillator slips below the midline becomes negative.
GBP / USD takes a break after the sharp drop from the previous session. The pair fell below 1.3650 in a move of over 100 pips. At the time of writing, GBP / USD is trading at 1.3660, up 0.03% for the day.
GBP / USD daily chart
After testing the 1.3913 high on September 14, GBP / USD lost momentum and continued its existing short-term downtrend.
Additionally, the spot is trading below the 50 and 100 day Simple Moving Averages (SMA), confirming the pressurized move for the pair at least in the short term.
That said, if price holds below the intraday low, it could revert to the horizontal support level of 1.3640, followed by the monthly low reached on August 20 at 1.3602.
The moving average convergence divergence indicator (MACD) slips below the midline. This would mean bears would easily come out of the 1.3572 low reached on July 20.
Alternatively, on the reversal side, immediate resistance appears at the psychological level of 1.2700.
GBP / USD bulls above key level would be encouraged to retest yesterday’s high of 1.3752, then horizontal resistance level of 1.3800.