GBPUSD fades bounce off key supports

With the bond bears keeping the reins, GBPUSD drifts lower during early Monday. In doing so, the quote fizzles recovery moves from 200-SMA portrayed during the last week amid downbeat RSI and MACD conditions. Even so, sellers have a bumpy road ahead that starts with a 200-SMA level of 1.3865. Should the cable bears break 1.3865 support, an ascending trend line from early February and one-month-old horizontal area, respectively around 1.3830 and 1.3770, will challenge the pair’s further downside. However, a clear downside break of 1.3770 will be enough to challenge February’s bottom surrounding 1.3565-60.

Alternatively, the latest swing high near 1.3950 guards the pair’s short-term upside ahead of the 1.3990-4000 resistance zone comprising multiple levels marked since February 19. Although reflation fears can keep threatening GBPUSD bulls around 1.4000, a successful run-up may catch a breather around February 24 low near 1.4080 ahead of challenging the yearly peak of 1.4237.