Bears to Watch Break below 50-SMA on Hourly Chart
GBP/USD consolidated on Tuesday and continued on a strong note in the morning on Wednesday, during the Asian trading session. Meanwhile, the GBP/USD pair is restricted to the 1.4140-1.4160 zone.
The hourly chart shows that GBP/USD is hovering below the 1.4160 mark. This level overlaps with multiple resistance confluence, which prevents the pair from rising above it. The downward trend line from the top of 1.4211 creates a significant obstacle to price rise. If price slides below the 50-hour Simple Moving Average (SMA) at 1.4145, the pair will have interim support at the 1.4150 horizontal support level.
The decreasing Moving Average Convergence Divergence (MACD) indicator suggests that the pair may drop deeper. Sellers should watch a low at 1.4077 hit on May 17 and a low at 1.4036 touched on May 14.
On the other hand, if price breaks the retreating line, it can go back to the 1.4190 horizontal resistance level. In this case, bulls will have strength to revisit the 1.4220 horizontal resistance level. GBP/USD might then revisit the levels near the 1.4240 zone last tested in late February 2021.
The GBP/USD pair traded at 1.4154 in the early morning. The pair was last seen trading at 1.4164. A change in price constitutes 0.07%.