- GBP / USD prints smooth gains, while consolidating recent bullish movements.
- Bearish chart pattern, failures to update the monthly high keep bears hopeful.
- 200-HMA adds to the negative side filter, normal RSI conditions do not favor any changes in the recent withdrawal.
GBP / USD remains heavy at around 1.3545, down 0.08% intraday, during Tokyo’s opening hour, which opened on Monday. In doing so, the pair portrays a graphical downward pattern in hourly formation (1H).
While the multiple setbacks in the 1.3619 / 24 area add to normal RSI conditions to suggest further weakness in GBP / USD prices, sellers will wait for confirmation of the bullish wedge before accepting entries.
As a result, a clear 1.3525 bearish breakout, also piercing the 1.3460 200-HMA level, is necessary for GBP / USD bears to applaud.
After that, the previous week’s low near 1.3190 may offer an intermediate stop before dragging the price to the bottom of the month around 1.3135.
Alternatively, a 1.3624 bullish clearance needs to cross the declared upper rising wedge line, currently around 1.3630, to reach the March 2018 low near 1.3710.
GBP / USD hourly chart
Trend: Expected retraction