- GBP/USD remained under some selling pressure for the sixth straight session on Wednesday.
- Brexit woes/COVID-19 jitters continued weighing on the sterling amid sustained USD strength.
- Weakness below the overnight swing lows will set the stage for an extension of the downfall.
The GBP/USD pair remained on the defensive through the early European session and was last seen hovering near the lower end of its intraday trading range, just below the 1.3600 mark.GBP/USD isbenefiting from a better market mood. Earlier, the pound struggled with a fresh EU-UK clash over the Northern Irish protocol and high levels of covid cases.
Pound/dollar's bounce makes sense when looking at the Relative Strength Index (RSI) on the four-hour chart – it dropped below 30, entering oversold conditions. However, this recovery is only enough to push the RSI above 30 .
GBP/USD continues suffering from downside momentum and trades below 1.640 critical resistance the four-hour chart.
Critical support awaits at the 1.3565-1.3570 region. Cable hit 1.3565 back in February and is now forming a double-bottom. If the pair tumbles below that line, the next significant support line is only 1.3450.Some resistance is at 1.3670, a former double-bottom that collapsed earlier this week, and the by 1.3730 and 1.3750.