September 7, 2022 12:24 AM ET
By: AnalysisWatch
GBP/USD remains near its two-year low hit on Monday, as bears flirt with 1.1450 while posting the biggest daily loss in a week, allowing the cable pair to approach its latest low near 1.1443 before Wednesday's London open.
A downward sloping support line from May around 1.1425 looks to be an immediate challenge for GBP/USD bears, given the oversold RSI (14).
Next, the March 2020 low near 1.1410 and the support line of a one-month descending channel near 1.1380 will be in focus.
If the GBP/USD price falls below 1.1380, the chances of a drop to early 1985 levels around 1.1000 increase.
Otherwise, recovery moves remain elusive until they stay below the DMA 10 resistance near 1.1610.
The indicated channel top at 1.1640 at press time is also an upside barrier.
Even if the GBP/USD bulls manage to break through the 1.1640 level, the July low at 1.1760 could challenge the bullish momentum.
In summary, GBP/USD should remain in the bearish crosshairs, but there is limited room to move lower.
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