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GBP/USD Price Analysis: Licks wounds below 1.3500, 50-DMA support eyed

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GBP/USD nurses losses amid a four-day downtrend, risk-aversion.
50-DMA help at 1.3421 stays in sight if bears prolong their control.
Bearish RSI factors to extra downside, center of attention stays on the Fed.
GBP/USD is licking its wounds beneath 1.3500, as bears take a breather after the latest downward spiral to three-week lows of 1.3440.

Looming UK political issues blended with intensifying risk-off temper hit the high-beta currency, the GBP, maintaining the bearish tone intact round the cable.

NATO readying their forces in Eastern Europe, as the geopolitical tensions between Russia and Ukraine escalate, spooked markets and bolstered the safe-haven demand for the US dollar.

Further, the dollar additionally benefited from aggressive Fed fee hike expectations, as the world’s most effective central financial institution is set to trace at coverage normalization on Wednesday when it concludes its two-day meeting.

In the meantime, the broader market sentiment, Russia-Ukraine updates and the UK political traits will proceed to have an impact on the major.

Looking at GBP/USD’s every day chart, the pair stays uncovered to draw back risks, with a sustained damage under Monday’s low of 1.3440 to unleash the extra declines in the direction of the horizontal 100-Daily Moving Average (DMA) at 1.3421.

The 14-day Relative Strength Index (RSI) is inching decrease beneath the midline, suggesting that there is extra room to fall for the forex pair.

The subsequent big assist is viewed at the spherical degree of 1.3400.

GBP/USD: Daily chart

Alternatively, acceptance above mildly bearish 50-DMA at 1.3536 on a day by day closing foundation is necessary to trying any restoration from multi-week lows.

The 21-DMA at 1.3565 will then venture the avenue to recovery, as bulls seem to be to recapture the 1.3600 hurdle.

GBP/USD: Additional technical levels

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