GBP/USD Price Analysis: Failures to cross 200-DMA recall bears

• GBP/USD drops back towards the monthly low, reverses the previous day’s corrective pullback.
• 23.6% Fibonacci retracement level offers immediate support, descending momentum line adds strength to the selling pressure.
• Monthly resistance line adds to the upside filters.

GBP/USD takes offers around 1.3750, down 0.06% to refresh intraday low, during Thursday’s Asian session. In doing so, the cable pair justifies the pullback from 200-DMA amid the downbeat Momentum line.

However, a clear break of 23.6% Fibonacci retracement (Fibo) of June–July declines, around 1.3730, becomes necessary for the pair sellers to amplify the dominance.

Following that, 1.3690 will be an additional halt to the south-run targeting the latest month’s low near 1.3570.

Alternatively, a daily closing beyond the 200-DMA level of 1.3790 will aim for a 38.2% Fibo level surrounding 1.3830.

It should be noted though that a descending trend line from July 30, near 1.3850, will challenge GBP/USD buyers past 1.3830.

Overall, GBP/USD remains on the bearish trajectory but the immediate moves seem restricted between 200-DMA and 23.6% Fibo.

GBP/USD: Daily chart

Trend: Further weakness expected