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GBP/USD Price analysis: falls to a new monthly low; emphasis on the 1.2260-50 support region
GBP/USD falls for the fourth consecutive day, and a new monthly low is offered. Bearish MACD indications and a sustained breach of the major SMAs favor bears ahead of the UK's monthly data dump. A five-week-old horizontal support zone limits the near-term decline in conjunction with an oversold RSI.
During Monday's mid-Asian session, GBP/USD bears maintained control for a fourth consecutive session and retested the monthly low. In doing so, the cable pair raises bids to 1.2270 and reaffirms the multi-day low as of press time.
However, an oversold RSI (14) can combine with several levels recorded since May 09 to threaten the pair's further decline around 1.2260-50.
Failing to do so might swiftly send the price below the annual low of 1.2155 before sending GBP/USD bears for the psychological magnet at 1.2000.
In contrast, the 200-SMA and 100-SMA might test the corrective downturn between 1.2468 and 1.2540, respectively.
A declining trend line resistance from mid-April, which was at 1.2550 at the time of publication, also opposes the short-term uptrend in the GBP/USD.
In conclusion, GBP/USD remains on the radar of bears ahead of the monthly data dump and monetary policy meetings of the Fed and Bank of England (BOE). As a result, a corrective pullback cannot be ruled out. However, the immediate downside faces several obstacles, so a pullback cannot be ruled out.
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