61.8% Fibonacci Retracement protects immediate upside ahead the previous support line
Bearish MACD and descending RSI lines joins sustained trading below the key support for favor sellers.
100 DMA increases the upside filters. 78.6% Fibonacci level lures bears.
The GBP/USD struggled to close the 60-pips bearish gap at 1.3370 on Monday’s initial Asian session.
GBP/USD jumped three weeks in a positive trend by Friday’s trading, as the market’s risk-off mood favors the US dollars bulls.
The fundamentals favor GBP/USD bears. However, a clear downside break in an ascending trendline from December 08 2021 (around 1.3480 at the press time) also suggests further declines.
However, the 61.8% Fibonacci Retracement (Fibo. The December-January upside of close to 1.3380 restricts the pair’s immediate recovery before the 50% Fibo. level and the support-turned-resistance line, respectively around 1.3450 and 1.3480.
To recall buyers, even if GBP/USD buyers cross the 1.2480 threshold, they must provide daily closings above the 100-DMA level around 1.3500.
The 1.3300 round number may provide immediate support for the pair. A break of this figure will remind GBP/USD bears to target the 78.6% Fibonacci level near 1.3280.
The December 2021 low at 1.3160 will be the focus in a GBP/USD bearish scenario.
