GBP/USD Price Analysis: Attempted bounce from 100-DMA is likely to remain capped
- GBP/USD stages a goodish rebound from 100-day SMA support.
- The uptick is likely to remain capped amid no-deal Brexit fears.
The GBP/USD pair quickly reversed an early European session dip to fresh 2-1/2 month lows and for now, seems to have defended 100-day SMA support. The pair jumped to fresh daily tops, around the 1.2935 region in the last hour, albeit lacked any strong follow-through.
Given last week's sustained weakness below a symmetrical triangle support, the near-term set-up remains tilted in favour of bearish traders. This coupled with the fact that oscillators on the daily chart maintained their bearish chart add credence to the negative outlook.
Hence, any subsequent positive move is likely to confront some fresh supply near the mentioned triangle support break-point, now turned resistance, around the key 1.30 psychological mark, and seems more likely to remain capped near the 1.3015-20 strong horizontal barrier.
On the flip side, bearish traders are likely to wait for some follow-through selling below the 1.2900-1.2890 region (100-DMA) before positioning for any further near-term depreciating move. The pair then might turn vulnerable to head towards testing the 1.2800 round-figure mark.
GBP/USD daily chart