GBP/USD Price Analysis: Holding onto critical support near 1.3800, risks remain to the downside

GBP/USD rebounds but not out of the woods yet.
Daily hedonal trendline support looks at risk amid bearish RSI.
The cable targets 1.3680 if the bears refuse to give up.

Dhwani Mehta FXStreet

GBP/USD is looking to find its feet above the 1.3800 barrier after hitting two-month lows at 1.3786 earlier in the Asian session.

The falling Treasury yields come to the rescue of the cable bulls amid retreating reflation bets, as the Fed signals rate lift-offs sooner than expected.

However, the bounce appears limited amid concerns over the delay in the UK reopening and Brexit issue. Additionally, broad-based US dollar strength also remains a weight on the spot.

From a near-term technical perspective, the spot seems to have found some support at the critical horizontal (dashed) trendline at 1.3796. Therefore, the bulls are attempting a minor bounce.

Immediate resistance awaits at the psychological 1.3850 level, as GBP/USD yearn to recapture the horizontal 100-Daily Moving Average (DMA) at 1.3939.

GBP/USD daily chart

However, with the Relative Strength Index (RSI) diving out of the oversold territory, currently at 31.73, the bears are likely to receive a fresh boost to take on the downside once again.

A sustained break below the abovementioned key support will open floors towards the next significant support located at 1.3680, the horizontal (orange) trendline.

GBP/USD additional levels to watch

GBP/USD

Overview
Today last price	1.3808
Today Daily Change	0.0002
Today Daily Change %	0.01
Today daily open	1.3808

Trends
Daily SMA20	1.4114
Daily SMA50	1.4021
Daily SMA100	1.3938
Daily SMA200	1.3598

Levels
Previous Daily High	1.3945
Previous Daily Low	1.3792
Previous Weekly High	1.4133
Previous Weekly Low	1.3792
Previous Monthly High	1.4234
Previous Monthly Low	1.3801
Daily Fibonacci 38.2%	1.385
Daily Fibonacci 61.8%	1.3886
Daily Pivot Point S1	1.3752
Daily Pivot Point S2	1.3696
Daily Pivot Point S3	1.36
Daily Pivot Point R1	1.3904
Daily Pivot Point R2	1.4001
Daily Pivot Point R3	1.4057

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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