GBP/USD Price Analysis: Buyers keep their eye on 1.3600

• GBP/USD kick starts the new week on a higher note in the early Asian session.
• The pair prints gains for the third straight session after sinking below 1.3420 on Wednesday.
• The momentum oscillator held onto the oversold zone makes bulls hopeful.

GBP/USD continues to foster gains on Monday in the Asian trading hours. The pair opened lower but recovered swiftly to touch the intraday high level. At the time of writing, GBP/USD is trading at 1.3570, up 0.17% for the day.

GBP/USD daily chart

Technically speaking, after testing the high of 1.3913 on September 14, the GBP/USD pair lost the momentum and continued with its existing short-term downside trend. Furthermore, the spot trades below the 21-day Simple Moving Average (SMA) at 1.3780, which confirms the pressured movement for the pair at least in the short term. GBP/USD ended the September series with more than 3% losses and tested the yearly lows at 1.3411 on Wednesday.

The pair bounced back from the mentioned level on Friday and continued to grind higher for the three consecutive days. Having said that, if the price sustains the session’s highs, it could test the 1.3600 and 1.3660 horizontal resistance levels respectively.

The Moving Average Convergence Divergence (MACD) indicator holds onto the oversold zone. This could mean that with any uptick in the MACD the bulls could easily take out the psychological 1.3700 mark.

Alternatively, on the reversal side the immediate support appears at 1.3520 September 28 low followed by the 1.3500 horizontal support level. Now, a daily close below 1.3500 could open the doors toward this Friday’s low of 1.3433.

GBP/USD additional levels