GBP/USD analysis: consolidative phase extends, risk still to the downside

Valeria Bednarik FXStreet

GBP/USD Current price: 1.3501

UK calendar to remain empty for the rest of the week.
USD remains strong, but the pair extends its consolidative phase.

The GBP/USD pair spent the day at the lower end of its latest range amid the absence of fresh UK-related headlines and prevalent dollar's demand. Mixed US data, however, interrupted the greenback's rally despite US Treasury yields extended their advances to fresh multi-year highs. The UK calendar will also remain empty on Thursday, while minor data is scheduled in the US. The pair gained downward potential despite holding above its weekly low of 1.3450, as intraday recoveries stalled short of 1.3600, the previous selling level. In the 4 hours chart, the pair is developing below its 20 SMA that slowly turns south, while the Momentum indicator extended its decline to fresh 1-week low. The RSI indicator in the mentioned chart hovers around 43, following price's action higher, but within familiar levels, far from indicating an upcoming upward move. Below 1.3450, the next relevant support comes at around 1.3410, where the pair has multiple relevant daily highs from last December.

Support levels: 1.3450 1.3410 1.3365

Resistance levels: 1.3520 1.3570 1.3610

View Live Chart for the GBP/USD

Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

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