- GBP / USD is posting mild gains as the recent upward movements are consolidated.
- Bearish chart pattern, failures in renewing the monthly high keep the bears hopeful.
- 200-HMA adds to the negative filter that normal RSI conditions do not promote a change in the recent withdrawal.
GBP / USD remains heavy at around 1.3545, down 0.08% during the day, during Tokyo’s first hour open Monday. By doing this, the pair is showing a bearish chart pattern on the hourly (1H) formation.
While the 1.3619/24 area multiple retreats are accompanied by normal RSI conditions to suggest further weakness in GBP / USD prices, sellers will wait for confirmation of the rising wedge before subscribing.
As a result, a marked downside break of 1.3525 which also pierces the 200-HMA level of 1.3460 becomes necessary for the GBP / USD bears to cheer.
After that, the previous week’s low at 1.3190 may provide a stop before the quote drags to the monthly low around 1.3135.
Alternatively, an upward clearance of 1.3624 must cross the top line of the said rising wedge, currently around 1.3630, to hit the March 2018 low at 1.3710.
GBP / USD hourly chart
Trend: relapse expected