GBP/USD Tests Critical 200-Hour MA Support at 1.3364
Sterling slides to a key technical pivot as sellers press after repeated failures near 1.3399 resistance.
The British pound tumbled against the dollar during Tuesday's North American session, with GBP/USD falling to its rising 200-hour moving average at 1.3364 — a level that has served as a reliable technical anchor since late June and now stands as the line in the sand for bulls and bears alike.
The selling pressure intensified after the pair failed on multiple attempts to hold above a dense resistance cluster near 1.3399, where the 100-day moving average, the 200-day moving average, and the 50% Fibonacci retracement of the May-to-July rally all converge. That triple layer of technical resistance has decisively shifted near-term momentum back toward sellers.
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The 200-hour moving average carries significant weight here. Buyers successfully defended it on June 30 following an earlier breakout, triggering a fresh rally leg. The level also aligns with the Asian session low, reinforcing its role as a pivotal support zone rather than a routine chart line.
Should sellers manage a sustained close beneath 1.3364, the next downside targets are stacked at 1.3338, then last week's low near 1.3323, and ultimately the 1.3300 area. Each breakdown would signal increasing bearish conviction and could invite further momentum selling from algorithmic traders tracking the same technical thresholds.
If buyers reclaim and defend the 200-hour MA, the focus shifts back to cracking the 1.3399 confluence. Only a convincing move above that zone — clearing all three major technical barriers simultaneously — would restore a bullish short-term outlook and hand control back to sterling buyers. Continue reading at Forexlive.
