- GBP/USD consolidates below the 1.4200 mark on Wednesday.
- Bears lookout for a break below the 50-SMA on the hourly chart.
- Neutral MACD asks for confirmation before any aggressive bets.
The GBP/USD pair extends the previous day’s consolidation move into the Asian session. The pair is confined in a narrow trading band of 1.4140-1.4160 for the time being.
GBP/USD hourly chart
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On the hourly chart, the pair has been marking submissive moves near the 1.4160 mark. The mentioned level coincides with multiple resistance confluence, making it hard for the pair to break above this level.
The downward trend line from the highs of 1.4211 acts as a strong barrier to price. If price breaks below the 50-hour Simple Moving Average (SMA) at 1.4154, then interim support could be found at the 1.4150 horizontal support level.
The receding Moving Average Convergence Divergence (MACD) indicator hints at more downside in the offing. The bears would look out for the May 17 low at 1.4077, followed by the May 14 low at 1.4036.
Alternatively, if price decisively breaks the bearish sloping line, then it could trace back towards the 1.4190 horizontal resistance level. In doing so, GBP/USD bulls would gather the momentum to recoup the 1.4220 horizontal resistance level.
The pair would then look to retest the levels last seen in late February near the 1.4240 area.