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?

Dhwani Mehta FXStreet

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

GBP/USD

Overview
Today last price	1.3822
Today Daily Change	-0.0076
Today Daily Change %	-0.55
Today daily open	1.3901

Trends
Daily SMA20	1.3848
Daily SMA50	1.3851
Daily SMA100	1.3667
Daily SMA200	1.3308

Levels
Previous Daily High	1.3914
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%	1.3875
Daily Fibonacci 61.8%	1.3852
Daily Pivot Point S1	1.3838
Daily Pivot Point S2	1.3776
Daily Pivot Point S3	1.3738
Daily Pivot Point R1	1.3939
Daily Pivot Point R2	1.3976
Daily Pivot Point R3	1.4039

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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