- GBP / USD briefly recovers to the 1.3900 region, but further rally appears limited.
- A powerful resistance awaits at 1.3920 as the RSI remains bullish.
- GBP / USD bounces as the US dollar falls along with Treasury yields.
GBP / USD fails to find acceptance above the round 1.3900 level and is backing slightly, although it maintains a significant portion of intraday gains so far this Tuesday.
The general weakness of the US dollar, amid an extension of the pullback in Treasury yields, continues to help the GBP / USD rally from the 1.3800 level.
From a short-term technical perspective, as seen on the 4-hour chart, GBP bulls are looking to challenge the powerful barrier at 1.3920, which is the convergence of resistance from a downtrend line and the 50 SMA. downward sloping periods.
A close above this region on the 4-hour chart would confirm the breaking of a falling wedge in GBP / USD, with the next major hurdle seen at the horizontal 100-period SMA at 1.3959.
The RSI has regained bullish territory, now above 52 points, which leaves room for further rises.
It is worth noting that the price has broken through the 21 and 200 SMAs previously, increasing the odds of an extension of the recovery.
On the other hand, the resistance of the 21-period SMA, now converted to support at 1.3865, could be tested on any retracement.
The further decline could be protected by the horizontal 200 SMA at 1.3842.
All in all, the path of least resistance appears to be to the upside after a sustained break above the 1.3920 level.
GBP / USD 4 hour chart
GBP / USD additional technical levels
.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
