• GBP/USD is testing lows after rejection at higher levels.
  • The cable remains trapped between two key averages on the 4H chart.
  • RSI trades flat at the midline, suggesting indecisiveness for the pair.

Having failed to clear a strong supply zone near 1.3580 recently, GBP/USD has turned south starting out a fresh week, now consolidating near mid-1.3500s.

The renewed Brexit concerns, fuel supply issues and a broad rebound in the US dollar are weighing negatively on the cable, as investors digest the latest China Evergrande story.

Light trading conditions seem to have added to the retreat in the major while a lack of relevant UK and US economic news will leave the pound traders at the mercy of the risk sentiment.  

From a near-term technical perspective, the price is keeping its range between the two key moving averages on the four-hour chart.

The upside likely remains capped below the downward-sloping 50-Simple Moving Average (SMA) at 1.3594. Meanwhile, the horizontal 21-SMA at 1.3495 is likely to defend the bullish traders.

The Relative Strength Index (RSI) is trading listlessly at the midline, offering no clear sense of direction for the traders, at the moment.

A sustained move above the range highs is needed to test the 50-SMA resistance, above which the 1.3650 psychological barrier could come into play.

GBP/USD: Four-hour chart

Alternatively, a daily closing below the 21-DMA support could reinforce bearish interests, exposing the downside towards the ten-month lows of 1.3411.

Ahead of that the 1.3500 could challenge the bullish commitments.

GBP/USD: Additional levels to consider

GBP/USD

Overview
Today last price 1.3546
Today Daily Change -0.0004
Today Daily Change % -0.03
Today daily open 1.3547
 
Trends
Daily SMA20 1.3706
Daily SMA50 1.3772
Daily SMA100 1.3872
Daily SMA200 1.3843
 
Levels
Previous Daily High 1.3576
Previous Daily Low 1.3434
Previous Weekly High 1.3729
Previous Weekly Low 1.3412
Previous Monthly High 1.3913
Previous Monthly Low 1.3412
Daily Fibonacci 38.2% 1.3522
Daily Fibonacci 61.8% 1.3488
Daily Pivot Point S1 1.3462
Daily Pivot Point S2 1.3377
Daily Pivot Point S3 1.332
Daily Pivot Point R1 1.3604
Daily Pivot Point R2 1.3661
Daily Pivot Point R3 1.3746

 

 

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