GBP/USD eyes key 1.4115 support amid firmer US dollar

GBP/USD remains pressured as the US dollar cheers a downbeat mood.
Rising wedge breakdown confirmed on 4H chart, eyes more downside.
RSI points south while teasing the central line.

Dhwani Mehta FXStreet

GBP/USD is looking to extend the correction from three-year highs, as the sellers remain in control amid a broadly firmer US dollar and bearish technical setup.

The US dollar continues to trade on the front foot across its major rivals, as the cautious trading seen in the European equities fuels flight to safety in the buck.

Meanwhile, the cable struggles amid macroeconomic divergence between the UK and the US, as investors shrug off the reopening optimism. The downward revision to the UK Manufacturing PMI data adds to the downside in the spot.

From a near-term technical perspective, the spot remains on track to test the immediate support at the horizontal trendline at 1.4115 after it confirmed a rising wedge breakdown on the four-hour chart.

Further south, the next downside target (orange trendline support) awaits at 1.4093

The Relative Strength Index (RSI) is pointing south while below the midline, backing the bearish case.

GBP/USD four-hour chart

On the upside, recapturing a 100-simple moving average (SMA) at 1.4150 on a sustained basis is critical for reviving the recovery towards the 50-SMA at 1.4166.

Buyers will then aim for the 1.4200 round figure.

GBP/USD additional levels to watch

GBP/USD

Overview
Today last price	1.4135
Today Daily Change	-0.0015
Today Daily Change %	-0.11
Today daily open	1.415

Trends
Daily SMA20	1.411
Daily SMA50	1.3941
Daily SMA100	1.3884
Daily SMA200	1.3538

Levels
Previous Daily High	1.4249
Previous Daily Low	1.4146
Previous Weekly High	1.4219
Previous Weekly Low	1.4092
Previous Monthly High	1.4234
Previous Monthly Low	1.3801
Daily Fibonacci 38.2%	1.4185
Daily Fibonacci 61.8%	1.421
Daily Pivot Point S1	1.4115
Daily Pivot Point S2	1.408
Daily Pivot Point S3	1.4013
Daily Pivot Point R1	1.4217
Daily Pivot Point R2	1.4284
Daily Pivot Point R3	1.4319

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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