On the verge of a bearish breakout, wait for US inflation.

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  • GBP / USD falls for the third day in a row and strikes the 1.4100 level.
  • GBP / USD is on the verge of a breakout of the bullish channel on the daily chart.
  • The focus remains on US inflation, the ECB and Thursday’s close.

GBP / USD is attacking the 1.4100 support, looking for deeper losses, as the bears remain in control amid a firmer US dollar.

Brexit concerns and reopening anxiety in the UK also remain a drag on the British pound, as attention shifts to the long-awaited monetary policy decision by the ECB and the US CPI.

From a short-term technical perspective, the pair is on the verge of a bearish breakout of an ascending wedge pattern if it closes the day below the support of the ascending trend line at 1.4103.

The next relevant support for is at the 1.4000 psychological level, below which the bullishly sloping 50-day moving average at 1.3994 could be tested.

However, with the RSI turning flat above the midline, currently at the 51 level, the odds of a bounce towards the 21 SMA at 1.4148 remain in place.

Acceptance above the latter level will negate the downside bias in the short term, opening the doors to pattern resistance at 1.4270.

Before that level, recent highs around 1.4190 could limit the recovery attempt.

GBP / USD daily chart

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GBP / USD additional levels

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