GBPUSD retreated quickly from its 34-month high of 1.4235, achieved on Tuesday, creating a steep bearish movement around the 1.3900 handle.
The price sank beneath the 20- and 40-period simple moving averages (SMAs) in the 4-hour chart, entering the Ichimoku cloud. The RSI is diving in the negative territory, while MACD is declining below its trigger and zero lines.
Further losses could take the market until the 100-period SMA currently at 1.3890 before testing the 1.3830 support. If traders continue to sell the pair, the next target could come from the 1.3770 obstacle, ahead of 1.3565.
Alternatively, a rebound on the 100-period SMA could send the price higher again, meeting the 40- and then the 20-period SMA at 1.4040 and 1.4090 respectively, but it first needs to beat the 1.3975 resistance. Overcoming these lines, the 1.4180 and the 1.4235 crucial levels could attract attention.
Overall, GBPUSD has been in a negative mode in the very short-term, however, in the broader outlook the price remains bullish.