The GBPUSD pair recovered to the 1.1800 area in the early American session as the US Dollar Index started to retreat from the daily high it set above 107.00.
GBPUSD seems to have met interim support at 1.1750 (static level, former resistance) following the decline witnessed during the Asian trading hours. On the upside, 1.1850 (static level) aligns as the next resistance. In case the pair flips that level into support, it could target 1.1900 (former support, psychological level) and 1.2000 (psychological level).
On the downside, a four-hour close below 1.1750 could open the door to an extended slide toward 1.1700 (psychological level, Fibonacci 23.6% retracement of the latest uptrend) and 1.1650 (20-period Simple Moving Average (SMA)).
It’s worth noting that the Relative Strength Index (RSI) indicator on the four-hour chart retreated below 70, suggesting that GBPUSD has room on the upside before it needs to make another downward correction.
