- GBP / USD strengthens amid mixed trade around the US dollar.
- GBP / USD is defending key support on the 4-hour chart around 1.4095.
- The RSI is pointing higher within the bearish territory.
GBP / USD is recovering from weekly lows near the 1.4100 level and appears to halt its three-day bearish momentum on Thursday.
Sentiment around GBP / USD continues to be undermined by harsh allegations by Dominic Cummings, the former senior adviser to British Prime Minister Boris Johnson, about the government’s handling of the covid pandemic.
Additionally, the renewed bullish momentum in the US dollar, amid rumors of a reduction in Fed bond purchases, adds to the downward pressure on the pair.
From a short-term technical perspective, GBP / USD is defending critical support near the 1.4095 region, which is the confluence of the horizontal support line and the upward sloping 100-period SMA on the 4 chart. hours.
However, for the rally to gain traction, the bulls must make a decisive break above the powerful resistance around 1.4150, where the 21 and 50 SMAs lie.
On the other hand, a close below the crucial support mentioned above could expose the next horizontal support (orange) at 1.4075.
The RSI is rising to test the midline, currently at the 45 level, showing the last seen in the pair.
GBP / USD 4 hour chart
GBP / USD technical levels
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