• GBP/USD extends the previous day’s pullback from 21-DMA as MACD teases bears.
• Weekly low holds the key to further downside towards May’s bottom.
• Previous resistance line from April appears a tough nut to crack for bears.
• Two-month-old resistance line, 100-DMA adds to the upside filters.

GBP/USD holds lower ground near 1.2030, flirting with the intraday bottom, as bears seek fresh clues. Even so, the bearish MACD signals joins the cable pair’s failure to cross the 21-DMA hurdle to favor the downside momentum during Thursday’s European session.

That said, the weekly low around the 1.2000 round figure appears an immediate challenge for the sellers to tackle. Following that, a south-run towards May’s monthly low near 1.1930 can’t be ruled out.

It’s worth noting, however, that the quote’s weakness past 1.1930 seems to have limited downside room as the resistance-turned-support from April, at 1.1880 by the press time, will challenge the GBP/USD bears.

Should the quote drops below 1.1880, the odds of witnessing the fresh yearly low, currently around 1.1760, can’t be ruled out.

Alternatively, recovery remains elusive below the 21-DMA level of 1.2110. Even so, a two-month-old resistance line near 1.2260 could challenge the GBP/USD bulls.

If at all the Cable pair crosses the 1.2260 hurdle, the 100-DMA level of 1.2382 will be the last defense for the bears.

GBP/USD: Daily chart

Trend: Further weakness expected