GBP/USD Technical Analysis: Corrective rally may have ended

• The GBP/USD has eroded the rising trendline, as seen in the 4-hour chart below, signaling the corrective rally from the low of 1.2662 has made a temporary top at 1.3043.
• Further, the rejection at the downward sloping (bearish) 50-day moving average (MA) on Aug. 30 and a close below the 10-day MA yesterday, as seen in the daily chart, indicates a bearish reversal. As a result, the spot could find acceptance below the immediate support of 1.28 (Aug. 24 low) today and that would open the doors to re-test of the recent low of 1.2662.
• On the higher side, a daily close above the 50-day MA, currently located at 1.3018, is needed to confirm a bullish reversal.

4-hour chart

Spot Rate: 1.2850

Daily High: 1.2876

Daily Low: 1.2841

Trend: Bearish

Resistance

R1: 1.2876 (daily high)

R2: 1.2919 (50-hour MA)

R3: 1.3018 (50-day MA)

Support

S1: 1.28 (Aug. 24 low)

S2: 1.2723 (Aug. 10 low)

S3: 1.2662 (Aug. 15 low)