GBP/USD Price Analysis: Lacks a clear directional bias around mid-1.3500s
|- GBP/USD is testing lows after rejection at higher levels.
- The cable remains trapped between two key averages on the 4H chart.
- RSI trades flat at the midline, suggesting indecisiveness for the pair.
Having failed to clear a strong supply zone near 1.3580 recently, GBP/USD has turned south starting out a fresh week, now consolidating near mid-1.3500s.
The renewed Brexit concerns, fuel supply issues and a broad rebound in the US dollar are weighing negatively on the cable, as investors digest the latest China Evergrande story.
Light trading conditions seem to have added to the retreat in the major while a lack of relevant UK and US economic news will leave the pound traders at the mercy of the risk sentiment.
From a near-term technical perspective, the price is keeping its range between the two key moving averages on the four-hour chart.
The upside likely remains capped below the downward-sloping 50-Simple Moving Average (SMA) at 1.3594. Meanwhile, the horizontal 21-SMA at 1.3495 is likely to defend the bullish traders.
The Relative Strength Index (RSI) is trading listlessly at the midline, offering no clear sense of direction for the traders, at the moment.
A sustained move above the range highs is needed to test the 50-SMA resistance, above which the 1.3650 psychological barrier could come into play.
GBP/USD: Four-hour chart
Alternatively, a daily closing below the 21-DMA support could reinforce bearish interests, exposing the downside towards the ten-month lows of 1.3411.
Ahead of that the 1.3500 could challenge the bullish commitments.
GBP/USD: Additional levels to consider
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.