GBP/USD Price Analysis: Attempts a bounce from the 50-HMA support

• GBP/USD faces rejection just shy of 1.39 as the US dollar rebounds.
• Brexit concerns weigh on the pound although 50-HMA comes to the rescue.
• Hourly RSI sees a fresh uptick but remains below 50.00.

GBP/USD is attempting a bounce from daily lows near 1.3835, reversing more than half the post-US NFP-led rally to multi-week highs.

The offered tone in the cable comes on the back of the resurgent demand for the US dollar across the board. Meanwhile, looming Brexit concerns between the UK and the European Union (EU) over the Northern Ireland (NI) protocol also keeps the pound undermined.

However, the major has stalled its descent over the last, finding support from the risk-on market mood.

From a short-term technical perspective, GBP/USD has found strong bids at the upward-sloping 50-Hourly Moving Average (HMA) at 1.3837.

If the bulls manage to defend the latter, then the rebound could extend towards the 21-HMA support-turned-resistance at 1.3859.

Further up, a fresh advance towards Friday’s high of 1.3891 cannot be ruled.

GBP/USD: Hourly chart

However. the Relative Strength Index (RSI) continues to trend below the midline, despite the latest uptick. This suggests that the major remains at a risk of further downside.

An hourly closing below the 50-HMA is critical to extending the recent correction, with the 1.3800 next on the sellers’ radars. At that level, the ascending 100-HMA coincides.

The next relevant support is envisioned at the bullish 200-HMA at 1.3770.

GBP/USD: Additional levels to consider