GBP/USD Price Analysis: Pierces through monthly key support with eyes on 200-SMA

GBP/USD takes offers to refresh intraday low, pokes short-term key support line.
Sustained trading below 100-SMA keeps sellers hopeful of visiting 200-SMA.
Two-week-old horizontal area restricts immediate upside before the monthly high.

GBP/USD sellers attack monthly low as it drops to 1.2090 heading into Tuesday’s London open. That said, the quote prints four-day downtrend as it approaches the monthly bottom amid broad US Dollar rebound.

In doing so, the Cable pair traders attack a one-month-old ascending trend line, after multiple failures to cross the 100-SMA. Additionally favoring the pair sellers could be the bearish MACD signals.

As a result, the GBP/USD prices could drop to the 200-SMA level surrounding 1.1980. However, the 1.2000 psychological magnet and the late November swing lows near 1.1900 may restrict the quote’s south run.

In a case where the Cable pair remains bearish past 1.1900, the mid-November swing low near 1.1760 could gain the market’s attention.

Alternatively, the support-turned-resistance line near 1.2130 and the 100-SMA level surrounding 1.2200 could challenge GBP/USD bulls.

Following that, the 1.2300 round figure and a fortnight-old horizontal region near 1.2345 could challenge the pair’s further upside before directing buyers towards the monthly peak of 1.2445.

Overall, GBP/USD is likely to decline further but the 200-SMA and multiple lows marked during late November could restrict short-term downside.