FX.co ★ GBP/USD analysis on 18 April

GBP/USD has managed to erase a portion of its daily losses after having dropped toward 1.3000 earlier in the day. The positive shift witnessed in risk sentiment, as reflected by recovering US stock index futures seems, to be allowing the pair to edge higher.

GBP/USD seems to have gained traction before testing 1.3000 but the pair faces several resistance levels that could easily cap the rebound. The first hurdle is located at the 1.3040/1.3150 area (static level, 50-period SMA on the four-hour chart) ahead of 1.3080 (static level, 100-period SMA) and 1.3100 (psychological level).

In the meantime, the Relative Strength Index (RSI) indicator stays near 40, suggesting that the latest recovery attempt was a technical correction and that buyers remain hesitant.

On the downside, 1.3000 (psychological level, static level) aligns as key support. In case this level turns into resistance, the next bearish targets could be seen at 1.2970 (April 13 low) and 1.2920 (static level).