GBP/USD Price Analysis: Struggles around 1.3900 despite triangle breakout
|- GBP/USD stalls the bounce as the US dollar resumes the upside.
- Symmetrical triangle breakout on the 4H chart still keeps buyers hopeful.
- RSI has turned south but holds above the midline.
GBP/USD is battling 1.3900 in early European dealing, as the US dollar picks up bids and resumes Tuesday’s uptrend.
Ongoing Brexit concerns over the Northern Ireland border issues and strong US economic data also weigh on the cable.
The focus shifts towards the NFP hints, in the form of the US ADP jobs and ISM Services PMI for near-term trading opportunities.
From a near term technical perspective, the cable is struggling to hold at higher levels despite a symmetrical triangle bullish breakout confirmed on the four-hour chart earlier today,
The bulls need to take out the daily highs at 1.3915 on a sustained basis, in order the 1.3950 level in their stride.
The Relative Strength Index (RSI) has turned south but remains well above the midline, backing the recent pause in the bounce.
GBP/USD four-hourly chart
A four-hourly closing below the 50-simple moving average (SMA) at 1.3893 could revive the selling momentum.
The downside could be then exposed towards 1.3874, the intersection of the 21 and 100-SMAs.
Further south, Tuesday’s low of 1.3839 could be put to test.
GBP/USD additional levels to watch
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.