GBP/USD Price Analysis: Holding onto critical support near 1.3800, risks remain to the downside

• GBP/USD rebounds but not out of the woods yet.
• Daily hedonal trendline support looks at risk amid bearish RSI.
• The cable targets 1.3680 if the bears refuse to give up.

GBP/USD is looking to find its feet above the 1.3800 barrier after hitting two-month lows at 1.3786 earlier in the Asian session.

The falling Treasury yields come to the rescue of the cable bulls amid retreating reflation bets, as the Fed signals rate lift-offs sooner than expected.

However, the bounce appears limited amid concerns over the delay in the UK reopening and Brexit issue. Additionally, broad-based US dollar strength also remains a weight on the spot.

From a near-term technical perspective, the spot seems to have found some support at the critical horizontal (dashed) trendline at 1.3796. Therefore, the bulls are attempting a minor bounce.

Immediate resistance awaits at the psychological 1.3850 level, as GBP/USD yearn to recapture the horizontal 100-Daily Moving Average (DMA) at 1.3939.

GBP/USD daily chart

However, with the Relative Strength Index (RSI) diving out of the oversold territory, currently at 31.73, the bears are likely to receive a fresh boost to take on the downside once again.

A sustained break below the abovementioned key support will open floors towards the next significant support located at 1.3680, the horizontal (orange) trendline.  

GBP/USD additional levels to watch