GBP/USD Price Analysis: Further downside hinges on 1.2100 break

• GBP/USD takes offers to refresh intraday low inside one-month-old rising wedge.
• Sustained trading below weekly resistance line, bearish MACD signals keep sellers hopeful.
• 200-SMA, late November swing low act as additional downside filters.

GBP/USD renews its intraday low near 1.2180 as it braces for the first weekly loss in five during early Thursday. In doing so, the Cable pair defends the bears by trading below a one-week-old descending resistance line, as well as inside a one-month-old rising wedge bearish chart formation.

That said, the downbeat signals from the MACD indicator also add strength to the bearish bias.

However, a clear downside break of the stated wedge’s support line, near 1.2100 by the press time, becomes necessary for the GBP/UDS sellers to take control. Following that, the theoretical target of 1.1100 will be in focus.

Though, the 200-SMA and November 09 swing low, respectively near 1.1790 and 1.1335, could challenge the downside moves.

Alternatively, an upside clearance of the weekly resistance line, close to 1.2210 at the latest, is a pre-requisite for the GBP/USD buyer’s entry.

Even so, the monthly high near 1.2340 and the stated wedge’s upper line, close to 1.2425, could challenge the pair’s upside momentum.

Overall, GBP/USD bulls seem running out of steam and hence a pullback can’t be ruled out.

GBP/USD: Four-hour chart

Trend: Limited downside expected