GBP/USD Price Forecast: Reclaims 1.3400 amid a weaker USD; not out of the woods yet

• GBP/USD gains some positive traction on Thursday amid a broadly weaker US Dollar.
• The technical setup backs the case for the emergence of fresh sellers at higher levels.
• A move beyond the 1.3465-1.3475 confluence is needed for bulls to retake control.

The GBP/USD pair attracts some buyers during the Asian session on Thursday and moves away from a nearly two-week trough, around the 1.3370 area touched the previous day. Spot prices climb further beyond the 1.3400 mark in the last hour and, for now, seem to have snapped a two-day losing streak amid a broadly weaker US Dollar (USD).

From a technical perspective, the recent repeated failures near the 100-period Simple Moving Average (SMA) and the downfall along a descending channel since the beginning of this month favor the GBP/USD bears. Furthermore, negative oscillators on 4-hour/daily charts suggest that any subsequent move up might still be seen as a selling opportunity and run the risk of fizzling out rather quickly.

Hence, it will be prudent to wait for a sustained strength above the 1.3465-1.3475 confluence hurdle - comprising the top end of the descending channel and the 100-period SMA - before positioning for further gains. Some follow-through buying beyond the 1.3500 psychological mark could lift the GBP/USD pair above the 1.3525-1.3530 supply zone, towards the next relevant barrier near the 1.3575-1.3580 area.

On the flip side, the 1.3370 area, representing the lower boundary of the downward sloping channel, might continue to protect the immediate downside, below which the GBP/USD pair could retest the 1.3330-1.3325 zone, or a nearly two-month low touched in September. The subsequent fall below the 1.3300 round figure will be seen as a fresh trigger for bearish traders and pave the way for deeper losses.