After a sharp decline in the previous session, the GBP/USD remains vulnerable.
Near the important support area of 1.3750, bears appear weary.
The momentum oscillator indicates that the negative trend will not be reversed very soon.
GBP/USD is struggling to hang on to the important support level at 1.3750 after breaking the 1.3800 level.
The GBP/USD currency pair is currently trading at 1.3771, up 0.01 percent on the day.
GBP/USD fell below 1.3800 on the daily chart after reaching a high of 1.4001 on June 23. The pair continued to trade lower due to strong selling pressure.
The appearance of a Doji candlestick after a large red candle indicates that traders are undecided.
The price levels haven’t risen much after they recovered from their lower intraday levels. Bulls in the GBP could retake the psychological level of 1.3800 if they succeed. ‘ For the previous four months, the pair has traded in a broad trading range between 1.3700 and 1.4000, with price variances between the periods.
The high of June 30 at 1.3873 would be the next higher goal, followed by the 1.3920 horizontal resistance level.
The receding Moving Average Convergence Divergence (MACD) signal, on the other hand, still indicates underlying bearish sentiment. Any drop in the MACD could rekindle bearish sentiment.
GBP/USD may test the 1.3750 horizontal support level, which is followed by the April 16 low of 1.3716.
Following that, market participants will march toward April 13 at the 1.3690 area./n
