The GBP/USD pair failed to build on its previous week’s gains and is now stuck around 1.3900.
Near the 1.3900 level, the bulls ran into a significant resistance block.
With a bullish crossover, the momentum oscillator is in the oversold zone.
On Tuesday morning’s Asian trading hours, the GBP/USD consolidates gains from the previous two sessions. Ahead of the US Consumer Price Index (CPI) data, the pair trades in a confined trading range.
The pair’s surge fades when reports appeared that the highly anticipated US-UK trade deal hopes were shattered, with reports claiming that no agreement will be reached for at least two years.
The appearance of Doji candlesticks near the 1.3900 mark on the daily chart reflects traders’ indecisiveness.
If the pair fails to retain its intraday gains, it may fall to the 20-day Simple Moving Average (SMA) of 1.3870.
The previous day’s low at 1.3839 would be the next lower target, followed by the 1.3810 horizontal support level.
The Moving Average Convergence Divergence (MACD) indicator, on the other hand, continues to point to underlying positive sentiment. Any increase in the MACD could reactivate the bulls.
The horizontal resistance levels of 1.3920 and 1.3950 could be tested by the GBP/USD pair.
The market will then march toward the 1.3986 level, which was reached on June 24./n
