After reversing from a monthly high, the GBP/USD remains under pressure.
The bears are supported by sustained trading below the 100-day moving average and the absence of an oversold RSI.
Bears are enticed by the 200-day moving average, and the March-April lows add to the support.
During Wednesday’s Asian session, GBP/USD bears take a breather at 1.3800, following a U-turn from the one-week high. From early February, the wire makes its way around to an ascending support line.
Given the space between the RSI’s current position and oversold levels, as well as the pair’s failure to keep bouncing off the indicated support line, GBP/USD bears remain optimistic that the 1.3670-60 support zone, which includes the 200-DMA and lows from March and April, will be visited.
During the slide, the monthly low, which is also the lowest since mid-April, will be approaching 1.3730, which may tempt short-term sellers.
The previous high around 1.3900 and the 100-DMA level near 1.3950, on the other hand, pose a threat to the quote’s corrective bounce ahead of the psychological magnet of 1.4000.
Even if the GBP/USD crosses the 1.4000 barrier, bulls will require a decisive break of the 1.4010 level to target the 1.4085 lows in early June.
More weakness is likely in the future./n
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