GBP/USD Price Analysis: 100-HMA challenges the recovery

• GBP/USD attempts a bounce but downside bias remains intact.
• The cable probes the 100-HMA barrier on its road to recovery.
• RSI turns south below the midline, limiting the rebound.

GBP/USD is struggling to extend the rebound above 1.1800, as the bull-bear tug-of-war extends ahead of the Fed minutes.

The risk-off mood, in the face of covid concerns and pre-FOMC minutes anxiety, keeps the bullish investors on the edge.

The same is depicted in the cable’s hourly chart, as the 100-Hourly Moving Average (HMA) at 1.3814 is seen challenging the recovery from Tuesday’s low of 1.3773.

Acceptance above the latter could revive the bullish interests, which could fuel a fresh upswing towards 1.3840 – a confluence of the 50 and 200-HMAs.

GBP/USD hourly chart

On the downside, a firm break below the rising trendline support at 1.3795 could recall sellers, bringing Tuesday’s low back in their sight.

Further south, the psychological 1.3750 level could offer some support to the GBP buyers.

GBP/USD additional levels to watch