GBPUSD has been struggling to rise back above the key 1.40 level after breaking below it on February 24.
The technical indicators are supporting further downside. The three moving averages are negatively aligned (50MA, 100MA and 200MA) and are falling. MACD is below zero and trending down, while RSI is in bearish territory below 50. However, since RSI is close to oversold territory this may suggest some consolidation in the near term, so prices may pause their decline for now.
Any bounces higher will be capped by resistance at 1.4000 and to the downside, there is scope to target 1.3800.
The Ichimoku cloud is also a good indicator of the bearish outlook. The market is below the cloud and the tenkan-sen has crossed below the kijun- sen line, giving a bearish signal.
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