GBP/USD price tests critical support as correction deepens below $1.36
GBP/USD dips after rejecting 1.36, with support near 1.3480 holding for now
The GBP/USD pair is currently navigating a corrective phase after rejecting the 1.36 resistance zone. The move comes as the broader structure remains anchored within a bullish Fibonacci retracement on higher timeframes, with the 0.382 level near 1.2967 having held as a base for months. The pair now sits near 1.3480, testing a vital support cluster after a rapid drop from 1.3560.
Highlights
- GBP/USD faces rejection near 1.36 as price pulls back toward the key 1.3480–1.3450 support zone.
- Daily and 4-hour charts show the pair stabilizing above key moving averages, but upside capped at 1.3535.
- Short-term indicators signal a tentative bullish rotation, but confirmation above 1.3580 is required.
On the daily chart, GBP/USD recently broke out of a descending channel but failed to sustain momentum above 1.36, triggering a pullback. The pair is now revisiting former breakout support between 1.3480 and 1.35. This zone is pivotal for the medium-term uptrend, with a sustained break below 1.3450 likely to invalidate the higher low sequence.
GBP/USD price dynamics (Source: TradingView)
On the 4-hour timeframe, price has found support at the 100-EMA near 1.3480, with the lower Bollinger Band and trendline intersecting at this level. Buyers have begun to show interest here, as evidenced by a bullish rejection candle, although further resistance is clustered around 1.3535, where the 20-EMA and 50-EMA converge.
Intraday signals hint at possible rebound
Short-term technicals offer a mixed picture. The 30-minute chart shows price stabilizing near 1.3480 after a sharp sell-off. The RSI has climbed back above 45, while the MACD is beginning a bullish crossover, suggesting early signs of positive momentum. Additionally, the Ichimoku Cloud on the same timeframe reveals a possible shift underway, with the Kijun-Sen and Tenkan-Sen nearing a crossover and price testing the base of the cloud from below. However, until price reclaims 1.3540–1.3580, this remains a cautious recovery effort within a broader consolidation.
As noted in prior coverage, GBP/USD’s long-term structure remains bullish above the 1.2960 handle. While the current retreat may test short-term sentiment, the pair has held key Fibonacci levels throughout the quarter. A break above 1.3580 could reopen the path toward the 1.3620–1.3770 zone, while a failure below 1.3450 would likely expose downside risks toward 1.3310.
