- The GBP / USD pair rose during Asian trading hours on Tuesday.
- The pair is facing strong resistance near the 1.3770-1.3780 area below the bearish descending line.
- MACD signals bullish momentum with underlying bullish sentiment.
GBP / USD trades on a higher note on Tuesday. The pair opened lower but quickly recovered to claim 1.3750, where it is currently oscillating.
GBP / USD daily chart
On the daily chart, GBP / USD is in a continuing downtrend from the July 30 high at 1.3983. The descending trendline of the mentioned level acts as a strong barrier for the GBP / USD. The spot is trading above the 50-day Simple Moving Average (SMA) at 1.3716, giving bulls hope for some recovery.
If the pair holds above the intraday high with the breakout of the bearish descending line, it would mean that the GBP / USD bulls can test the psychological bar of 1.3800. A successful breakout of the 100-day SMA at 1.3812 could pave the way for the 1.3850 horizontal resistance level.
The Moving Average Convergence Divergence Indicator (MACD) maintains the oversold zone. Any rise in the MACD could provide bullish momentum instead. The bulls would approach the psychological level of 1.3900 in this case.
Alternatively, a daily close below the 50-day SMA at 1.3714 would cause the dominant trend to continue, with the first bearish target at Friday’s low of 1.3667, followed by the horizontal support area of ââ1, 3555.
Then the bears would not hesitate to remove the horizontal support level of 1.3500.
Additional GBP / USD Levels