GBP/USD Price Analysis: Rebound remains capped below 1.3800

  • GBP/USD makes an impressive comeback amid broad risk-aversion.
  • The cable bulls face stiff resistance at 1.3800, bearish bias remains intact.
  • Impending bear cross and RSI sub-50 level keep sellers in control.

GBP/USD is attempting a recovery amid broad risk-aversion, as the pound outperforms across the fx board so far this Thursday.

The rebound in the cable from 1.3760 could be associated with fresh selling seen in the US dollar, as the relentless slide in the Treasury yields drags the greenback lower.

Resurgent covid concerns and its likely hit to the global economic turnaround continue to dampen the investors’ sentiment.

However, the pound emerges the strongest amongst the lot amid Britain’s relative success in vaccinations. The UK boasts of the highest number of doses administered per 100 people across the world.

From a near-term technical perspective, the currency pair’s four-hour chart shows that the price has managed to bounce off ascending trendline support at 1.3761.

However, the recovery appears elusive amid an impending bear cross, with the 21-Simple Moving Average (SMA) on the verge of cutting the 50-SMA from above.

Further, the Relative Strength Index (RSI) remains below the 50 level, despite ticking slightly higher, which keeps the selling interest intact.

If the bears yield a decisive break below the mentioned support, a drop towards 1.3700 cannot be ruled out.

GBP/USD hourly chart

To the upside, the GBP bulls need a four-hourly close above the 1.3824 resistance, the confluence of the 21 and 50-SMAs, in order to negate the near-term bearish momentum.

Buyers would then target the 1.3850 level on their road to recovery.

GBP/USD additional levels to watch


Today last price 1.3782
Today Daily Change -0.0020
Today Daily Change % -0.14
Today daily open 1.38
Daily SMA20 1.3921
Daily SMA50 1.4022
Daily SMA100 1.3949
Daily SMA200 1.3664
Previous Daily High 1.3842
Previous Daily Low 1.3754
Previous Weekly High 1.394
Previous Weekly Low 1.3732
Previous Monthly High 1.4249
Previous Monthly Low 1.3787
Daily Fibonacci 38.2% 1.3808
Daily Fibonacci 61.8% 1.3787
Daily Pivot Point S1 1.3756
Daily Pivot Point S2 1.3711
Daily Pivot Point S3 1.3668
Daily Pivot Point R1 1.3844
Daily Pivot Point R2 1.3887
Daily Pivot Point R3 1.3931



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