The GBP/USD pair is trading below 1.3430 in the Asian session, hunched over during a quiet period. The pair had been feeling a bit blue for four days. When the price gets near resistance, buyers begin looking very worried. There hasn’t been very much downward movement, but there has not been much upward movement, either, and undeniably, the fact is, there’s no momentum right now.
Mixed Technicals Keep the Pair in a Holding Pattern
Technically, GBP/USD sits between some key moving averages. It is below the nine-day EMA, which has levelled off and limits rallies. However, there isn’t a clear downward trend because it is still above the 50-day EMA. “Consolidation” is evident in this arrangement and the 14-day RSI is fairly neutral, hovering around 52. Sellers may become more aggressive and drive the pair lower if the RSI falls below 50.
Support Holds, but Bulls Need a Break Higher
Right now, support comes in at the 50-day EMA near 1.3380. As long as GBP/USD stays above that level at the daily close, the bigger bullish picture holds up, and dips probably attract some buying. If the pair slips under support, though, the focus shifts lower to the 1.3010 level. On the flip side, if GBP/USD can break above the nine-day EMA around 1.3460, bulls could get back in the driver’s seat and aim for the 1.3560 area. A move past that opens the door to tougher resistance near 1.3725 and maybe even 1.3788.
