GBP/USD Price Analysis: Bounces towards 1.38, but not out of the woods yet

• GBP/USD rebounds but 1.3800 remains a tough nut to crack.
• The cable bears keep their sight on 200-DMA amid bearish RSI.
• Downbeat UK data, DXY strength keep the sellers hopeful.

GBP/USD has bounced off daily lows of 1.3758, although lacks a follow-through recovery momentum, as the US dollar remains broadly firmer amid a rebound in the Treasury yields.

Brexit headlines combined with persisting Delta covid variant worries continue to limit the renewed uptick in the spot.

Looking at it technically, the pair appears to have found some support around the midpoint of the 1.3700 level, prompting the rebound.

However, with the Relative Strength Index (RSI) still hovering below the 50 level, any recovery attempts are likely to be short-lived.

Recapturing the 1.3800 level on a sustained basis is critical to unleashing any meaningful recovery.

Further up, the psychological 1.3850 level could be put to test.

GBP/USD daily chart

Alternatively, if the support near 1.3750 gives way, a test of the July 2 low at 1.3731 would be in the offing.

The next significant support is seen at the 1.3700 round number, below which the ascending 200-Daily Moving Average (DMA) at 1.3672 will get tested.

GBP/USD additional levels to watch