GBPUSD has been in a descending mode over the last week, reaching a new two-and-a-half-month low of 1.3750 on Thursday. The 20- and 40-period simple moving averages (SMAs) are following the recent price action as well as the Ichimoku lines. The RSI is sloping marginally down beneath the neutral threshold of 50, while the MACD is strengthening its bearish move below its trigger and zero lines in the 4-hour chart.
Despite the latest bullish session, if the pair declines underneath the 1.3750 restrictive area, it could open the way for the 1.3705 support, this being the low from April 16. More losses could take the pair towards the 1.3670 barrier, taken from bottom on April 12.
On the other hand, a successful battle with the near-term falling trend line and the 20-period SMA could send the market until the 40-period SMA currently at 1.3860 ahead of the 1.3970 resistance level. A jump higher could meet the 1.4000 psychological number.
Summarizing, GBPUSD is forming a negative structure in the short- and long-term view, though any notable increases above the 1.4000 handle and the 200-period SMA at 1.4055 could change the outlook to neutral.
