GBPUSD portrays sluggish market conditions as the bears jostle with the 200-SMA following Friday’s heavy fall, amid the escalating Brexit woes. Even so, the quote’s downside break of the 100-SMA, near 1.3720, keeps the bears hopeful of the further weakness of the cable pair. That said, lows marked during late September and early October, respectively around 1.3600 and 1.3550, will offer intermediate halts before directing the quote towards the yearly low of 1.3410, marked in September.
Meanwhile, corrective pullback beyond the 100-SMA level of 1.3720 will be challenged by a two-week-old resistance line, near 1.3815. In a case where the GBPUSD bulls manage to cross the 1.3815 hurdle, the highs marked during September and July, respectively around 1.3915 and 1.3985 will challenge the upside momentum. Also acting as an upside filter is the 1.4000 threshold. Overall, GBPUSD broke short-term key support on Friday and is likely waiting for bears to take control.
Meanwhile, corrective pullback beyond the 100-SMA level of 1.3720 will be challenged by a two-week-old resistance line, near 1.3815. In a case where the GBPUSD bulls manage to cross the 1.3815 hurdle, the highs marked during September and July, respectively around 1.3915 and 1.3985 will challenge the upside momentum. Also acting as an upside filter is the 1.4000 threshold. Overall, GBPUSD broke short-term key support on Friday and is likely waiting for bears to take control.