Alike other majors, GBPUSD also cheers US dollar pullback to bounce off yearly low during early Monday. Also favoring the corrective pullback is the 61.8% FE level of the cable pair’s moves from October 19 to November 09. Given the steady RSI line battling the bearish MACD signals, the pair’s rebound towards a two-week-old resistance line near 1.3500 can’t be ruled out. However, any further upside will be challenged by a two-week-old horizontal resistance and 200-SMA, respectively around 1.3605 and 1.3630.
Meanwhile, pullback moves will aim for the 1.3400 and the 1.3380 support levels before the stated 61.8% FE level, near 1.3350 challenges the bears. In a case where the GBPUSD remains weak past 1.3350, a downward sloping support line from June around the 1.3300 threshold will be crucial to watch for the counter-trend traders. To sum up, the pair stays on the back foot but witnesses intermediate bounces of late.