GBP/USD is struggling to hold on to its weekly low rebound.
The four-month-old horizontal region is limiting the immediate downside, while the monthly resistance line is testing the corrective downturn.
Sellers remain hopeful due to a cap on the momentum line and sustained trading below the 100-day SMA.
During the early Asian session on Thursday, the GBP/USD pair’s comeback from the weekly low was restricted around 1.3835-40. This justifies the cable pair’s continued trading below a one-month-old resistance line, as well as bearish Momentum and a downbeat RSI.
The bears, on the other hand, are up against a tough nut to crack, as several levels recorded since early March, around 1.3810-3800, are posing a hurdle to additional drops aimed at the yearly low around 1.3670.
The 1.3745-50 and 1.3700 thresholds may provide an intermediate halt amid the quote’s weakening between 1.3800 and 1.3670 during the collapse.
A daily close above the stated resistance line of 1.3865, on the other hand, will aim for the 100-DMA level of 1.3952. The early April top near 1.3920, though, may serve as a cushion.
Multiple resistances between the 1.4000 round figure and 1.4010 can test the GBP/USD bulls’ gains if they manage to break through the 1.3952 barrier.
The Momentum line is testing a five-week-old barrier, and a breakout could favor the pair’s most recent corrective downturn.
More weakness is likely in the future./n
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