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  • GBP/USD prints mild gains while consolidating recent upside moves.
  • Bearish chart pattern, failures to refresh monthly high keep bears hopeful.
  • 200-HMA adds to the downside filter, normal RSI conditions favor no change in recent pullback.

GBP/USD stays heavy around 1.3545, down 0.08% intraday, during the initial hour of Tokyo open on Monday. In doing so, the pair portrays a bearish chart pattern on the hourly (1H) formation.

While the multiple pullbacks from 1.3619/24 area join normal RSI conditions to suggest further weakness in GBP/USD prices, sellers will wait for the confirmation of the rising wedge before taking entries.

As a result, a clear downside break of 1.3525, also piercing off the 200-HMA level of 1.3460 becomes necessary for the GBP/USD bears to cheer.

Following that, the previous week’s low near 1.3190 can offer an intermediate halt before dragging the quote to the monthly bottom surrounding 1.3135.

Alternatively, an upside clearance of 1.3624 needs to cross the upper line of the stated rising wedge, currently around 1.3630, to target the March 2018 low near 1.3710.

GBP/USD hourly chart

Trend: Pullback expected