#GBPUSD @ 1.14601 extends the previous day’s pullback towards four-month-old support line. (Pivot Orderbook analysis)

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• GBP/USD extends the previous day’s pullback towards four-month-old support line.
• Oversold RSI (14), lower line of the monthly bearish channel acts as additional downside filters.
• 10-DMA guards immediate upside, buyers need validation from July’s low.

The pair currently trades last at 1.14601.

The previous day high was 1.1609 while the previous day low was 1.1494. The daily 38.2% Fib levels comes at 1.1565, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.1538, expected to provide resistance.

GBP/USD holds lower grounds near the two-year bottom, marked on Monday, as bears flirt with the 1.1450 while flashing the biggest daily loss in a week. With this, the Cable pair approaches the latest low near 1.1443 heading into Wednesday’s London open.

A downward sloping support line from May, around 1.1425, appears an immediate challenge for the GBP/USD bears considering the oversold RSI (14).

Following that, the March 2020 low near 1.1410 ad the support line of a one-month-old falling channel, near 1.1380, will be in focus.

Should the GBP/USD prices drop below 1.1380, the odds of witnessing a slump towards the early 1985 levels surrounding 1.1000.

Alternatively, recovery moves remain elusive until staying below the 10-DMA resistance near 1.1610.

Also acting as an upside hurdle is the stated channel’s top, at 1.1640 by the press time.

Even if the GBP/USD bulls manage to cross the 1.1640 hurdle, July’s low of 1.1760 could challenge the upside momentum.

To sum up, GBP/USD is likely to remain on the bear’s radar but the downside room is limited.

Limited downside expected

Technical Levels: Supports and Resistances

GBPUSD currently trading at 1.1461 at the time of writing. Pair opened at 1.1521 and is trading with a change of -0.52 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 1.1828, 50 SMA 1.1956, 100 SMA @ 1.2203 and 200 SMA @ 1.2773.

The previous day high was 1.1609 while the previous day low was 1.1494. The daily 38.2% Fib levels comes at 1.1565, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.1538, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 1.1473, 1.1426, 1.1358
• Pivot resistance is noted at 1.1589, 1.1657, 1.1705

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