- GBP / USD confirmed the breaking of a descending wedge on the daily chart last Friday.
- Strong resistance at 1.3850 challenges bullish engagement.
- The RSI turned bearish on Easter Monday, what awaits us?
GBP / USD is licking its wounds after falling towards the 1.3800 region amid repositioning trades.
GBP / USD managed to defend this level the day before, but risks remain skewed to the downside as the daily technical setup appears to be in favor of the bears.
The pair closed below the key 21- and 50-day moving averages on Tuesday, which acted as crucial support earlier.
Given that, the price remains vulnerable to deeper losses, with the bearish RSI also adding credibility to the stark outlook. The RSI is currently at 48, well below the center line.
A test of the April 1 low at 1.3746 remains unavoidable if the 1.3800 level gives way. The next relevant support is at the upward sloping 100-day SMA at 1.3680.
On the other hand, if the pair manages to find a strong foothold above the previously mentioned powerful support, now turned into resistance at 1.3850, the bulls could attempt a rally.
If it rises above that region, a test of the 1.3900 level could be back on buyers’ radar.
GBP / USD daily chart
GBP / USD additional levels
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