GBP/USD set to challenge the 200-DMA at 1.3772 – OCBC

GBP/USD is extending the bearish momentum into the fourth straight this Wednesday. In the view of analysts at OCBC Bank, the cable risks a drop to the 200- day moving average (DMA) around the 1.3770 level.

See – GBP/USD: Under pressure below 1.4018, scope for a dive to July lows at 1.3571 – Commerzbank

Re-engage downside

“The Bank of England last week made a departure from the extreme-dovish stance, but still shows that it is not in a hurry to tighten. This marginal shift is likely not to register amid a stronger lean at the Fed and other hawkish central banks.”

“Likely to see a top for the pair at 1.4000 for now, with the resistance moving lower to 1.3900/20.”

“The immediate downside target may be the 200-DMA (1.3772).”