The GBP/USD pair has lost its bullish momentum and retreated to the 1.1720 area after having climbed above 1.1750 earlier in the day. With the UK’s FTSE 100 Index erasing its opening gains, the British pound is struggling to find demand ahead of US data.
GBP/USD was last seen trading at 1.1750, where the 20-period SMA on the four-hour chart is located. Meanwhile, the Relative Strength Index (RSI) indicator on the same chart climbed to 5. This suggests that sellers remain on the sidelines. Additionally, the pair holds above the descending regression channel coming from early August.
In case the pair manages to rise above 1.1750 and starts using that level as support, it could target 1.1800 (Fibonacci 23.6% retracement of the latest downtrend, 50-period SMA) and 1.1850 (static level).
On the downside, a failure to clear the 1.1750 hurdles could open the door for a slide toward 1.1700 (psychological level, static level) and 1.1650 (static level, end-point of the downtrend).