GBP/USD Price Analysis: Dips below 50-hour SMA

• GBP/USD dips below key average, eyes ascending trendline support.  
• The hourly chart indicator shows a bearish pattern. 

The US dollar is witnessing a broad-based oversold bounce and pushing GBP/USD lower. 

At press time, the currency pair is trading just below its 50-hour Simple Moving Average (SMA) at 1.3536. The hourly chart Relative Strength Index shows a double top breakdown (bearish pattern). 

As such, the pair looks set to challenge an eight-day-long ascending trendline's support located near 1.3510 at press time. A violation there would expose 1.3451 (support of Dec. 16 low on the hourly chart). 

Alternatively, a bounce from the ascending trendline would shift risk in favor of a re-test of Thursday's high of 1.3624. 

Hourly chart

Trend: Bearish

Technical levels