GBP/USD Price Analysis: Bounces off 11-week-old support but not out of the woods

• GBP/USD struggles to keep the bounce off five-week low.
• Bearish MACD signals, sustained trading below short-term key supports favor sellers.
• Fortnight-old resistance line, 21-DMA challenge immediate upside moves.

GBP/USD fades the corrective pullback from a horizontal area established since early November, retreating to 1.3380 amid Friday’s Asian session.

The cable pair dropped during the last two trading sessions before the bears took a breather around the five-week low of 1.3357.

That said, the rebound struggles around the 61.8% Fibonacci retracement (Fibo.) level of December-January upside, near 1.3390, of late.

In addition to the immediate Fibo. resistance, the 50-DMA and a descending trend line from January 14, respectively around 1.3420 and 1.3470, act to challenge the GBP/USD buyers.

It’s worth noting that bearish MACD signals and downbeat RSI conditions, not oversold, are in favor of the GBP/USD sellers.

As a result, the fresh selling may wait for a clear downside break of the aforementioned horizontal support stretched from November 11, around 1.3350-60.

Following that, 1.3280 may act as a buffer during the GBP/USD south-run targeting December’s low near 1.3160.

GBP/USD: Daily chart

Trend: Further weakness expected