During a three-day downturn, the GBP/USD retests an intraday low.
The bears are being tested by an ascending trend channel that began on July 2.
To reclaim control, the Bulls must overcome a 1.3920-25 deficit.
During Wednesday’s Asian session, the GBP/USD exchange rate is hovering at 1.3800, down 0.07 percent intraday. The cable pair has now fallen for the third day in a row inside an eight-day-old rising channel bullish shape.
However, the quote’s continuous trading below the 1.3920-25 obstacle, which includes the 200-EMA and the upper line of the indicated channel, together with bearish MACD signals, keeps sellers hopeful.
As a result, further downside to the channel’s support, near 1.3770, appears likely, but any further weakening will reveal the bearish flag on the chart, indicating a south-run to the yearly low around 1.3450.
The key to observe in the fall is the lows from March and April, which are around 1.3670.
Corrective pullbacks, on the other hand, are meaningless unless they stay below 1.3925, a breach of which will aim for late June’s swing high above 1.4005.
It’s worth noting that unless the GBP/USD bulls see a solid run-up past the late-May low near 1.4090, they’re unlikely to be convinced.
More weakness is likely in the future./n
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