- GBP / USD pushes down light gains while consolidating recent upward movements.
- Bearish chart pattern, failure to refresh monthly keeps bears hope.
- 200-HMA contributes to the downward filter, normal RSI conditions favor no change in the recent downturn.
GBP / USD remains heavy around 1.3545, with a decline of 0.08% during the first hour of Tokyo opening on Monday. Thus, the pair depicts a clumsy chart pattern on the hourly (1H) formation.
While the multiple declines of 1.3619 / 24 area join normal RSI conditions to suggest further weakness in GBP / USD prices, sellers will wait for the confirmation of the rising wedge before taking entries.
As a result, a clear downside of 1.3525, which also breaks down the 200-HMA level of 1.3460, is needed for the GBP / USD bears.
Thereafter, the low of the previous week near 1.3190 may offer an interim downtime before the quote is dragged to the monthly bottom around 1.3135.
Alternatively, an upward clearance of 1.3624 should cross the top line of the said rising wedge, currently around 1.3630, to direct the low in March 2018 near 1.3710.
GBP / USD hourly chart
Trend: decline expected