GBP/USD Price Analysis: Bearish bias remains intact while below 21-SMA

GBP/USD is attempting a bounce above as USD bulls take a breather.
The cable remains capped below 21-SMA on 4H amid Brexit, UK political woes.
RSI recovers but stays below 50.00, keeping sellers hopeful.

Dhwani Mehta FXStreet

GBP/USD is fading an uptick to daily highs of 1.3891, although remains well off the weekly lows at 1.3855 in early European dealings.

The retreat in the US dollar across the board helps the rebound in the cable but the risk-off market mood spoils the party for the bulls.

Despite the renewed upside, the pair remains exposed to downside risks amid expectations of earlier Fed’s tapering, looming Brexit concerns and the UK political jitters.

Read: UK’s Kwarteng: Finance Minister Sunak doing a fantastic job

GBP/USD technical outlook

Looking at the four-hour chart, GBP/USD is has bounced off the falling wedge support at 1.3855, although the upside attempts remain capped below the downward-sloping 21-Simple Moving Average (SMA) at 1.3905.

The immediate resistance is seen at the 50-SMA of 1.3913. Further up, the falling wedge upside barrier at 1.3935 could be put to test if the recovery momentum picks up pace.

However, with the Relative Strength Index (RSI) still lurking below the midline, the cable’s bounce appears shallow.

A breach of the abovementioned critical support could open floors towards the horizontal 200-SMA at 1.3835, almost where the 100-SMA lies.

GBP/USD four-hour chart

GBP/USD additional levels to watch

GBP/USD

Overview
Today last price	1.3878
Today Daily Change	0.0007
Today Daily Change %	0.05
Today daily open	1.3872

Trends
Daily SMA20	1.3832
Daily SMA50	1.392
Daily SMA100	1.3923
Daily SMA200	1.3758

Levels
Previous Daily High	1.3933
Previous Daily Low	1.3861
Previous Weekly High	1.3958
Previous Weekly Low	1.3861
Previous Monthly High	1.3984
Previous Monthly Low	1.3572
Daily Fibonacci 38.2%	1.3889
Daily Fibonacci 61.8%	1.3906
Daily Pivot Point S1	1.3844
Daily Pivot Point S2	1.3817
Daily Pivot Point S3	1.3773
Daily Pivot Point R1	1.3916
Daily Pivot Point R2	1.3961
Daily Pivot Point R3	1.3988

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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