GBP/USD Technical analysis: Nearing two-month ascending trendline support

• GBP/USD is nearing key ascending trendline support.  
• Daily chart shows a bearish reversal candlestick pattern.  

GBP/USD is trading within a touching distance with the support of the trendline connecting Oct. 10 and Nov. 27 lows.  

At press time, the trendline support is located at 1.3103 and the pair is seen at 1.3111.

Bearish reversal

The pair carved out a Gravestone Doji on Monday and fell by 1.52% Tuesday, confirming a short-term bearish reversal.

The bearish view would gain credence if the ascending trendline support is breached.  

A violation of the trendline support will likely yield a re-test of the former resistance-turned-support of 1.3012.  

The hourly chart relative strength index is reporting oversold conditions with a below-30 print. As a result, a minor bounce from the rising trendline support to 1.3150 cannot be ruled out.  

Daily chart

Trend: Bearish

Technical levels