#GBPUSD @ 1.18333 -imp levels: pares the week-start rebound from multi-month low.

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• GBP/USD pares the week-start rebound from multi-month low.
• Bearish chart pattern, key SMAs challenge buyers even as RSI, MACD favor further recovery.
• The longer-term falling channel adds barriers to the trading filters.

The pair currently trades last at 1.18333.

The previous day high was 1.1838 while the previous day low was 1.1742. The daily 38.2% Fib levels comes at 1.1779, expected to provide support. Similarly, the daily 61.8% fib level is at 1.1802, expected to provide support.

GBP/USD rebound fails to gain acceptance inside a one-week-old descending trend channel. That said, the cable pair seesaws around the resistance line of the stated bearish chart pattern, close to 1.1835 during the initial Asian session on Wednesday.

In addition to the aforementioned channel’s top, near 1.1855, the 100-HMA and the 200-HMA could also challenge GBP/USD bulls around 1.1870 and 1.1990 in that order.

Trend: Further weakness expected

Following that, the 1.2000 psychological magnet and convergence of the 21-DMA and the 50-DMA on the daily chart will be crucial for the pair buyers to watch.

Above all, the upper line of the downward sloping trend channel from mid-May, close to 1.2200, appears the last defense of the GBP/USD sellers.

Trend: Bearish

It’s worth noting that the MACD and RSI are both suggesting short-term recovery on the hourly chart.

Alternatively, the 1.1790 level acts as the immediate support ahead of the latest lows near 1.1720-15.

Following that, the weekly channel’s support line and the lower line of the longer-term trend channel, respectively near 1.1660 and 1.1615, will be crucial supports to watch during the GBP/USD pair’s further weakness.

Technical Levels: Supports and Resistances

GBPUSD currently trading at 1.1835 at the time of writing. Pair opened at 1.1766 and is trading with a change of 0.59% % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 1.2088, 50 SMA 1.2081, 100 SMA @ 1.2355 and 200 SMA @ 1.2868.

The previous day high was 1.1838 while the previous day low was 1.1742. The daily 38.2% Fib levels comes at 1.1779, expected to provide support. Similarly, the daily 61.8% fib level is at 1.1802, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 1.1726, 1.1686, 1.1629
• Pivot resistance is noted at 1.1822, 1.1878, 1.1918

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