Cable bears attack seven-week-old ascending support line near 1.2800

• GBP/USD holds lower grounds at two-week low after declining in the last seven consecutive days.
• Clear downside break of multi-day-old ascending trend line, downbeat oscillators favor Cable sellers.
• Convergence of 50-DMA, support line of bullish channel prods Pound Sterling bears amid light calendar at home.

GBP/USD bears keep the reins for the eighth consecutive day despite making rounds to 1.2810-20 amid early hours of Tuesday’s Asian session. In doing so, the Cable pair prods an upward-sloping support line stretched from early June while staying within a nearly five-month-old bullish channel. Apart from the immediate support line, a light calendar in the UK and a cautious mood ahead of Wednesday’s Federal Reserve (Fed) monetary policy meeting also prods the Pound Sterling traders.

Also read: GBP/USD suffers seven-day slide amid weak UK PMIs, ahead of FOMC’s decision

That said, the GBP/USD pair’s reversal from a 15-month high during the mid-July broke an upward-sloping support line from May 08, which in turn joins the bearish MACD signals and steady RSI (14) line to keep the sellers hopeful of breaking the immediate support line near 1.2800.

However, the 50-DMA and bottom line of the aforementioned bullish channel together offers a tough nut to crack for the GBP/USD bears around 1.2670.

Following that, the late June swing low of 1.2590 and the previous monthly bottom surrounding 1.2370 will be in the spotlight.

On the contrary, GBP/USD recovery needs validation from June’s peak of around 1.2850 before challenging the multi-day-old previous support line stretched from early May, close to 1.3030 at the latest.

In a case where the Pound Sterling remains firmer past 1.3030, the odds of witnessing a rally toward crossing the latest multi-month peak of around 1.3145 can’t be ruled out. In doing so, the GBP/USD bulls may aim for the top line of the bullish channel, around 1.3200 by the press time.

GBP/USD: Daily chart

Trend: Limited downside expected