GBP/USD Price Analysis: Remains capped below 1.3850 after falling wedge breakout

GBP/USD confirmed a falling wedge breakout on the daily chart last Friday.
Strong resistance at 1.3850 challenges the bullish commitments.
RSI has turned bearish on Easter Monday, what’s in store?

Dhwani Mehta FXStreet

GBP/USD is holding onto Friday’s trading range below 1.3850, as the US dollar keeps its recovery mode intact after a bit beat on the US Nonfarm Payrolls last Friday.

The cable is likely to take cues from the dollar dynamics and broader market sentiment, as trading is expected to be light, as the most major European markets remain closed on account of Easter Monday.

At the press time, the cable trades neutral on the day, around 1.3825, as it continues to face strong selling pressure around 1.3845-50 region. That zone is the confluence of the horizontal 21 and 50-daily moving averages (DMA).

It's worth noting that the spot confirmed a falling wedge breakout on the daily chart after the price closed Friday above the falling trendline resistance at 1.3824.

Buyers need acceptance above the 1.3850 key upside barrier, in order to extend the break higher towards 1.3900.

Further up, the March 19 high at 1.3959 could be challenged.

GBP/USD: Daily chart

However, with the relative strength index (RSI) having returned to the bearish territory, GBP/USD is envisioned to breach the 1.3800 support should Friday’s low of 1.3813 cave-in.

The next crucial support around 1.3750, Thursday’s low, could limit the declines. The 100-DMA at 1.3666 is likely to offer strong support to the GBP bulls.

GBP/USD: Additional levels

GBP/USD

Overview
Today last price	1.3826
Today Daily Change	-0.0005
Today Daily Change %	-0.04
Today daily open	1.3831

Trends
Daily SMA20	1.3844
Daily SMA50	1.3846
Daily SMA100	1.366
Daily SMA200	1.33

Levels
Previous Daily High	1.3853
Previous Daily Low	1.3813
Previous Weekly High	1.3853
Previous Weekly Low	1.3706
Previous Monthly High	1.4017
Previous Monthly Low	1.3671
Daily Fibonacci 38.2%	1.3828
Daily Fibonacci 61.8%	1.3837
Daily Pivot Point S1	1.3812
Daily Pivot Point S2	1.3793
Daily Pivot Point S3	1.3772
Daily Pivot Point R1	1.3852
Daily Pivot Point R2	1.3872
Daily Pivot Point R3	1.3891

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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