Title: GBP/USD Price Analysis: Portrays three-day downtrend to poke 1.2100 key support

August 15, 2022 02:56 AM ET

By: AnalysisWatch

The GBP/USD bears keep the reins near the intraday lows for the third consecutive day and enter Monday's London session down 0.22%.

While a downward resistance mile from mid-June triggered the GBP/USD reversal, the meeting of the 21-DMA and a month-old upward support line near 1.2100 challenged the bears.

Given the recent easing bullish bias in MACD and a downward sloping RSI (14), GBP/USD is likely to extend its recent weakness below the critical support level of 1.2100.

Following that, the 23.6% Fibonacci retracement level of the downtrend between late May and mid-July at 1.1975 could provide a stop during the pair's decline towards the yearly low at 1.1760.

In the meantime, recovery moves could first attack the 50% Fibonacci retracement level of 1.2215 before challenging the aforementioned mid-June resistance line at the latest.

If GBP/USD buyers manage to break above the 1.2260 hurdle, the monthly high at 1.2295 and the mid-June momentum high at 1.2410 could test the bulls before taking control.