GBP/USD Price Analysis: Looks directionless below 20-day SMA near 1.3750

• GBP/USD fails to capitalize on the previous week’s gains.
• Additional gains for the pair if price breaks 1.3750.
• Momentum oscillator is in the oversold zone with a bullish crossover.

GBP/USD consolidates gains for the previous two sessions on Monday morning’s Asian session. The pair moves in a narrow trading range with no clear trading direction and waits for confirmation.

At the time of writing, GBP/USD is trading at 1.3748, up 0.01% for the day.

GBP/USD daily chart

On the daily chart, the formation of the Doji candlestick reflects the indecisiveness among the traders. The descending trendline from the high of 1.4185 acts as a strong barrier for the bulls.

If the pair fails to hold onto the intraday gains, then it could drop toward the previous day’s low at 1.3720.

The next lower targets would be the 1.3700 and the 1.3650 horizontal support levels.

Alternatively, the  Moving Average Convergence Divergence (MACD) indicator still points at the underlying bullish sentiment. Any uptick in the MACD could bring bulls back into action.

GBP/USD could touch the 20-day Simple Moving Average (SMA) at 1.3791 as the first upside target.

Next, if price could break the bearish sloping line, it would meet the 1.3840 horizontal resistance level followed by the high of July 15 at 1.3899.

GBP/USD additional levels