GBP/USD Price Analysis: On the verge of a downside breakout, awaits US inflation

GBP/USD drops for the third straight day, attacks 1.4100.
The cable is on the verge of a rising channel breakdown on the daily chart.
Focus remains on US inflation, ECB and Thursday’s closing.

Dhwani Mehta FXStreet

GBP/USD is attacking the 1.4100 support, eyeing deeper losses, as the sellers remain in control amid a broadly firmer US dollar.

Brexit concerns and the UK reopening anxiety also remain a drag on the cable, as the attention turns towards the highly-anticipated US CPI and ECB policy decision this Thursday.

From a near-term technical perspective, the spot is on the verge of a downside breakout from a rising wedge formation if it closes the day below the rising trendline support at 1.4103.

The next relevant support for GBP bulls is seen at the psychological 1.4000 levels, below which the ascending 50-daily moving average (DMA) at 1.3994 could be tested.

The abovementioned level is critical, as the bullish 21-simple moving average (SMA) coincides.

GBP/USD daily chart

However, with the Relative Strength Index (RSI) is turning flat above the midline, currently, at 50.95, the odds for a rebound towards the 21-DMA at 1.4148 remain in place.

Acceptance above the latter will negate the downside bias in the near term, opening doors towards the pattern resistance aligned at 1.4270.

Ahead of that level, the intermittent highs around 1.4190 could limit the recovery attempts.

GBP/USD additional levels to watch

GBP/USD

Overview
Today last price	1.4110
Today Daily Change	-0.0006
Today Daily Change %	-0.04
Today daily open	1.412

Trends
Daily SMA20	1.4151
Daily SMA50	1.3989
Daily SMA100	1.3915
Daily SMA200	1.3564

Levels
Previous Daily High	1.4189
Previous Daily Low	1.411
Previous Weekly High	1.4249
Previous Weekly Low	1.4083
Previous Monthly High	1.4234
Previous Monthly Low	1.3801
Daily Fibonacci 38.2%	1.414
Daily Fibonacci 61.8%	1.4159
Daily Pivot Point S1	1.409
Daily Pivot Point S2	1.4061
Daily Pivot Point S3	1.4011
Daily Pivot Point R1	1.4169
Daily Pivot Point R2	1.4219
Daily Pivot Point R3	1.4248

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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