The GBP/USD pair saw some buying interest during the Asian session on Thursday, pulling away from a nearly two-week low around 1.3370 reached the previous day. In fact, the spot price has climbed above the 1.3400 mark recently, seemingly breaking a two-day losing streak, largely due to a significant drop in the US dollar.
From a technical viewpoint, the pair’s repeated struggles around the 100-period simple moving average (SMA) and its retreat within a descending channel from earlier this month seem to favor the GBP/USD bears. A negative oscillator on the 4-hour and daily charts implies that any future uptick might be viewed as a selling opportunity, potentially fizzling out quickly.
Consequently, it might be best to watch for consistent strength beyond the confluence resistance around 1.3465-1.3475, which includes the upper boundary of the descending channel and the 100-period SMA, before aiming for higher targets. Should there be additional buying above the psychological 1.3500 mark, it could push the pair past the 1.3525-1.3530 supply zone, possibly reaching another significant level near 1.3575-1.3580.
On the flip side, the 1.3370 region, marking the lower edge of the descending channel, might remain a point of concern for now. If the GBP/USD pair dips below this level, it could test the 1.3330-1.3325 area, where it touched nearly a two-month low in September. A further decline past the 1.3300 figure would likely be interpreted as a new signal for bearish traders, leading to more losses.
