The GBP/USD pair faced selling pressure during Wednesday’s Asian session, eroding part of the weekly gains it had made over the past two days. Spot prices dropped to the 1.3400 mark, influenced by a modest recovery in the US Dollar (USD), and briefly slipped below the mid-1.3300s towards the session’s close.
Technically, the GBP/USD pair showed resilience earlier this week, holding near the 1.3250-1.3245 support level and bouncing off the 100-period Exponential Moving Average (SMA) on the 4-hour chart. Oscillators on both daily and hourly charts remain in positive territory, suggesting that any further decline may present a buying opportunity near the 1.3300 level, with further drops potentially limited.
However, a decisive break below the 1.3250-1.3245 support could open the door for a deeper correction. Such a move could extend the decline from last month’s multi-year highs in the mid-1.3400s, with potential targets near the 1.3200 mark, followed by the 1.3170-1.3165 support zone. If the bearish momentum continues, the pair could eventually test the 1.3100 round figure.
On the upside, any move beyond the 1.3400 level may face resistance near the 1.3445 region, the multi-year peak. A sustained break above this level could trigger renewed bullish momentum, paving the way for a move toward the 1.3500 psychological barrier. Further gains could extend the pair’s rise towards the 1.3570-1.3575 region and the key 1.3600 level.
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