- GBP/USD was seen consolidating in a range below the 1.3900 mark.
- The upside remains capped near 200-hour SMA amid stronger USD.
- Investors await a fresh catalyst before placing any directional bets.
The GBP/USD pair seesawed between tepid gains/minor losses through the mid-European session and was last seen trading in the neutral territory, around the 1.3870-75 region.
A modest pickup in the US Treasury bond yields allowed the US dollar to regain some positive traction and recover a part of the previous day’s losses. This, in turn, was seen as a key factor capping any meaningful upside for the GBP/USD pair.
From a technical perspective, the GBP/USD pair has been struggling to find acceptance above the 1.3900 mark and once again started retreating from 200-hour SMA. The mentioned barrier should now act as a key pivotal point for intraday traders.
Meanwhile, technical indicators on hourly/daily charts haven’t been supportive of any firm near-term direction. Investors also seemed reluctant, rather preferred to wait for Wednesday’s release of US consumer inflation figures for a fresh impetus.
That said, a convincing breakthrough the 1.3900-1.3910 barrier (200-hour SMA), might be seen as a fresh trigger for bullish traders. The GBP/USD pair might then accelerate the momentum and aim back towards reclaiming the key 1.4000 psychological mark.
On the flip side, immediate support is pegged near the 1.3830 horizontal zone and is closely followed by the 1.3800 mark. Sustained weakness below will mark a bearish breakdown and turn the GBP/USD pair vulnerable to extend its recent pullback from multi-year tops.
The subsequent downfall has the potential to drag the GBP/USD pair further below the 1.3800 mark, towards testing the next relevant support near mid-1.3700s. The pair could extend the downward trajectory towards the 1.3700 round-figure mark.
GBP/USD 1-hourly chart
Technical levels to watch
Share
