GBPUSD keeps bounce off 1.3270 key support, bears in charge

GBPUSD struggles to defend 1.3270 support convergence, comprising a descending trend line from late July and 61.8% Fibonacci retracement (Fibo.) level of September 2020 to June 2021 upside. Even so, nearly oversold RSI conditions hint at a corrective pullback towards a short-term resistance line near 1.3375, a break of which will challenge the 20-DMA hurdle surrounding 1.3430. In a case where the cable rises past 1.3430 resistance, July’s low of 1.3570 and November 9 swing high near 1.3610 will be important to watch for further direction.

Meanwhile, GBPUSD bears will have a tough task breaking the 1.3270 support but following that a 100-pip fall towards October 2020 peak near 1.3175 can’t be ruled out. During the pair’s weakness below 1.3175, December 2020 trough and 78.6% Fibo. level, respectively near 1.3130 and the 1.3000 psychological magnet will be in focus. To sum up, GBPUSD sellers remain in command but 1.3270 offers a near-term key question to answer.