GBP/USD Price Analysis: Upside needs validation above 1.3500

GBP/USD edges lower on Friday in the European trading hours.
The pair lost almost 300-pips in a span of two days from the high of 1.3717.
Double bottom support near 1.3410 brings much respite for GBP/USD.

GBP/USD continues to consolidate for the past two sessions. The pair confides in a narrow trade band with a downside bias. At the time of writing, GBP/USD is trading at 1.3471, down 0.02% for the day.

GBP/USD daily chart

Technically speaking, after testing the high of 1.3913 on September 14, the GBP/USD pair lost the momentum and continued with its existing short-term downside trend. Furthermore, the spot trades below the 21-day and 50-day Simple Moving Averages (SMA), which confirms the pressured movement for the pair at least in the short term. The GBP/USD bears are looking for some corrective pullback .Having said that, if price sustains above the intraday high, it could move back to the previous day’s high of 1.3517 followed by the psychological 1.3600 level.

The Moving Average Convergence Divergence (MACD) indicator holds onto the oversold zone. This would mean that with any uptick in the MACD the bulls could easily take out the high of 1.3717 made on this Tuesday.

Alternatively, on the reversal side the immediate support appears at the 1.3410 horizontal support level. Next, the bears could fall back to the levels last seen in December 2020 at 1.3350 (December 23).