GBPUSD is dropping below the 20- and 40-day simple moving averages (SMAs) but is still holding above the 200-day SMA and near the 1.3800 level. In the short-term, the bias looks neutral-to-bearish after the fall below the 1.4000 resistance level.
Regarding the technical indicators, the MACD is flattening below its trigger and zero lines, while the RSI is moving below its neutral threshold of 50.
Further losses should see the 200-day SMA currently at 1.3780 acting as a major support. A drop below this key level would reinforce the near-term bearish structure and open the way towards the 1.3577 and the 1.3435 barriers.
In the event of an upside reversal, the 1.4000 level could become a hurdle before being able to re-challenge the 35-month high of 1.4248. A break above this level would lead the way towards the 1.4345 resistance, registered in January 2018.
To conclude, GBPUSD has been in a sideways channel since February 4 and any moves above 1.4248 or below 1.3577 could paint a clearer picture.
