GBP/USD Price Analysis: Impending death cross points to more downside

• GBP/USD’s rejection at higher levels recalls sellers.  
• RSI remains bearish, a death cross lurks on the 1D chart.
• A test of the 1.3700 level remains inevitable for GBP traders.

GBP/USD is attempting a bounce from daily lows of 1.3731, although remains modestly flat on the day amid a broadly firmer US dollar and looming Brexit concerns.

Markets lookout for the US ADP and ISM Manufacturing PMI data due later on Wednesday for fresh hints on the NFP report. The US data is likely to have a significant impact on the dollar trades, influencing the cable.

As observed on the four-hour chart, the major turned sharply lower after facing rejection just above the 1.3800 level on Tuesday. That level is the 200-Daily Moving Average (DMA), a critical resistance.

Therefore, a rejection at the 200-DMA cap has reinforced bearish bets, calling for a retest of the weekly lows of 1.3680.

Ahead of that, the 1.3700 round number will challenge the downside momentum.

The Relative Strength Index (RSI) is sitting just beneath the midline, suggesting the bears are likely to retain control going forward.

Further, a death cross formation lurks on the said time frame, with the 50-DMA set to cut the 200-DMA from above.

GBP/USD: Daily chart

Alternatively, GBP bulls need to recapture the 21-DMA at 1.3784, above which the confluence of the 50 and 200-DMAs at 1.3809 will offer a tough fight to the cable optimists.

A daily closing above the latter is needed to negate the downtrend, providing a brief respite to GBP/USD buyers.

GBP/USD: Additional levels to consider