- GBP / USD dips around mid-October lows after a three-day downtrend.
- MACD bearish, remains below the 50 DMA favors sellers.
- The horizontal supports for August and July prove an immediate drop.
The GBP/USD it rallies around 1.3620, the lowest level in three weeks as traders prepare for the FOMC decision tomorrow.
Although a clear break to the downside below the 50 DMA and a bearish MACD signal GBP / USD sellers, the proximity to key support zones and the proximity of the RSI line to the oversold area may put a bottom below prices.
That being said, a horizontal area comprising multiple lows marked since August 20, around 1.3600-3610 acts as an immediate challenge for bears before targeting another support region around 1.3575-70, stretching from July.
If the price refrains from bouncing off 1.3570, the 1.3500 level may offer an intermediate stop before dragging the price to the yearly low near 1.3410.
Conversely, a sell-off to the 50 DMA level of 1.3710 is not a green pass for GBP / USD buyers, as the late September high of around 1.3750 and the October high of 1.3833 could challenge traders. bulls before giving them control.
In short, GBP / USD is still weak but has strong support to the downside to limit short-term declines.
GBP / USD: daily chart
Technical levels
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