GBP/USD Price Analysis: Bears flex muscles around mid-1.2100s

• GBP/USD stays depressed on breaking five-week-old support line even as 200-DMA defends buyers.
• Gravestone Doji bearish candlestick, most bearish MACD signals in two months suggest further downside.
• Buyers need validation from 1.2360 to retake control.

GBP/USD struggles around 1.2150 as it seesaws between the previous support line and the 200-DMA during early Tuesday. Even so, a bearish candlestick formation and the most bearish MACD signals since late September keep the sellers hopeful.

That said, the 200-DMA level surrounding 1.2090 holds the key to the GBP/USD pair’s further downside targeting the late November swing low of 1.1900.

It’s worth noting that multiple supports around 1.1770-60 and October’s peak near 1.1645 could challenge GBP/USD bears past 1.1900.

In a case where the Cable pair remains bearish below 1.1645, the odds of witnessing a gradual south-run towards October’s low near 1.1060 and then to the 1.1000 psychological magnet can’t be ruled out.

On the flip side, the support-turned-resistance line from November 11, around 1.2185, guards the quote’s immediate upside.

Following that, the previous day’s top of 1.2242 challenges the GBP/USD buyers as a break of which would defy the gravestone bearish candlestick.

Even so, a two-week-old horizontal resistance area near 1.2345-60 holds the gate for the Cable bull’s welcome.

Overall, GBP/USD is likely to decline further until crossing 1.2242.

GBP/USD: Daily chart

Trend: Further downside expected