GBP/USD Price Analysis: Tuesday’s close below key 1.3850 support keeps bears hopeful
- 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?
GBP/USD is licking its wounds after the big figure slide to 1.3800 amid repositioning trades.
The cable managed to defend the latter but the risks remain skewed to the downside, as the daily technical setup appears to be in favor of the bears.
At the press time, the cable trades little changed around 1.3820, looking to retest the 1.3800 support once again.
The spot closed Tuesday below the key 21 and 50-daily moving averages (DMA), which acted as crucial support.
Given that, the price remains vulnerable to deeper losses, with the bearish Relative Strength Index (RSI) also adding credence to the dour outlook. The RSI currently stands at 48.85, well below the central line.
A test of the April 1 low at 1.3746 remains inevitable should the 1.3800 level give way. The next relevant support is seen at the upward-sloping 100-DMA at 1.3680.
GBP/USD: Daily chart
Alternatively, if the major managed to find a strong foothold above the earlier mentioned powerful support now resistance at 1.3850, the bulls could attempt a comeback.
A test of the 1.3900 level could be back on the buyers’ radars.
GBP/USD: Additional levels
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.
