Title: GBP/USD Price Analysis: Bears tighten grips on the way to 1.1930
August 18, 2022 12:36 AM ET
GBP/USD remains near 1.2030, flirting with intraday lows as bears look for fresh clues. Nevertheless, bearish MACD signals along with the cable pair's failure to break the 21-DMA hurdle favor the downside momentum during Thursday's European session.
However, the weekly low around the round number of 1.2000 seems to be an immediate challenge for the sellers to overcome. A downside move towards the May monthly low at 1.1930 cannot be ruled out.
However, it should be noted that the weakness in the price beyond 1.1930 seems to have limited downside scope, as the resistance that turned into support in April and was at 1.1880 at the time of writing is a challenge for the GBP/USD bears.
If the price falls below 1.1880, a new low for the year, currently at 1.1760, cannot be ruled out.
Alternatively, a recovery below the 21-DMA of 1.2110 remains difficult to imagine. Nevertheless, a two-month-old resistance line at 1.2260 could pose a challenge to GBP/USD bulls.
Should the cable pair break above the 1.2260 hurdle, the 100-DMA level of 1.2382 would be the last defense for the bears.