GBP/USD to come under renewed selling pressure if buyers fail to defend 1.3600

GBP/USD seems to have gone into a consolidation phase above 1.3600. However, the near-term technical outlook doesn't yet point to a buildup of bullish momentum and sellers wait for 1.3600 support to fail, FXStreet’s Eren Sengezer reports.

Near-term resistance seems to have formed at 1.3650

“In case Wall Street's main indexes continue to push lower after the opening bell, we could see the dollar regather its strength. On the other hand, GBP/USD could benefit from the risk-positive market environment if US stocks rebound in a convincing way.”

“Interim resistance for GBP/USD seems to have formed at 1.3650, where the 50-period SMA on the four-hour chart is located. The pair needs to rise above that level and start using it as support to attract bulls. 1.3680 (static level) and 1.3700 (psychological level, broken ascending trendline coming from December) align as the next hurdles.”

“On the downside, the 100-period SMA forms dynamic support a little below 1.3600. If we see a four-hour candle close below that support, the next bearish target could be seen at 1.3530 (Fibonacci 38.2% retracement).”

See: GBP/USD could climb as high as 1.3750 – ING