The GBP/USD pair tries to recover, but the bearish bias continues.
On the 4H chart, the cable verifies a descending triangle breakdown.
To reverse the decline, bulls must break over this major resistance near 1.3900.
As the US dollar brakes its rise despite improving market sentiment, the GBP/USD is making a tiny recovery attempt from daily lows of 1.3859.
The recovery in the cable is also being aided by a small fall in US Treasury yields, while the risks remain tilted to the negative.
This is supported by the fact that the currency pair completed a descending triangle breakdown earlier in Asian trades on the four-hour chart, closing the candle below the horizontal trendline support at 1.3871.
The psychological level of 1.3850 appears to offer immediate support for the pair, below which the June 21 low of 1.3787 could be challenged.
The Relative Strength Index (RSI) has risen somewhat but is still below 50.00, implying that the bears will maintain their control on the major.
A bear cross of the 21 and 50-Simple Moving Averages (SMA) adds to the bearish price outlook.
The price must regain the 1.3903 hurdle, which is the confluence of the 21 and 50-SMAs, in order for the recovery to be sustained in the short run.
The triangle barrier at 1.3919 will be on the buyers’ minds as they move higher.
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