GBP/USD Price Analysis: Sellers pause near multi-month support, downside risk remains below 1.3750

• GBP/USD remains frail after a heavy downside movement in the previous session.
• Bears seem exhausted near the critical support area of 1.3750.
• Momentum oscillator hints at no immediate reversal in the negative trend.

After breaking the 1.3800 level, GBP/USD struggles to hold on to the critical support level around 1.3750.

At the time of writing, the GBP/USD pair is trading at 1.3771, up 0.01% for the day.

GBP/USD daily chart

On the daily chart, GBP/USD tumbled below 1.3800 after testing the high of 1.4001 on June 23. The pair remained under persistent selling pressure to trade lower.

The formation of a Doji candlestick after a big red candle suggests indecisiveness among traders. 

The recovery from the lower intraday levels supports little bounce in the price levels. In doing so, GBP bulls could reclaim the 1.3800 psychological mark.
‘
The pair moved in a broad trading range of 1.3700 and 1.4000 for the past four months, with price deviations between the period.

The next higher target would be the high of June 30 at 1.3873 followed by the 1.3920 horizontal resistance level.

Alternatively, the receding Moving Average Convergence Divergence (MACD) indicator still points at the underlying bearish sentiment. Any downtick in the MACD could bring bears back into action.

GBP/USD could touch the 1.3750 horizontal support level followed by the low of April 16 at 1.3716.

Next, the market participants will march toward April 13 in the vicinity of the 1.3690 area.

GBP/USD additional levels