GBP/USD came within a touching distance of 1.3400 earlier in the day but managed to reverse its direction. With the greenback coming under renewed bearish pressure in the early American session, the pair is posting small gains around 1.3450.
With the sharp decline witnessed late Tuesday, GBP/USD broke below the ascending trend line coming from December 21. Additionally, the Relative Strength Index (RSI) indicator on the four-hour chart returned to 50, confirming the view that the pair has lost its bullish momentum.
On the downside, the lower limit of the weekly trading range is forming key support at 1.3400. In case this level turns into resistance, additional losses toward 1.3370 (former resistance) could be witnessed before 1.3330 (200-period SMA).
The 20-period SMA acts as interim resistance at 1.3420 before 1.3460 (static level) and 1.3500 (psychological level).
The material has been provided by InstaForex Company – www.instaforex.com