GBP/USD is keeping its range around 1.1500, as investors await the energy relief measures due to be rolled out by the new UK PM Liz Truss. The US dollar struggles to find demand amid weaker yields, as all eyes remain on Powell's speech.

The oversold RSI and lower line of the stated channel, as well as the pair’s hesitance in breaking the 1.1400 during 2020, as well as on the previous day, seem to suggest a short-term rebound of the GBP/USD prices. That said, July’s low of 1.1760 gained the immediate attention of traders before the multi-day-old channel’s upper line, around 1.2080 by the press time.

It’s worth noting, though, that a horizontal area comprising multiple levels marked since April 2020, around 1.2650-75, will be a tough nut to crack got the pair buyer and holds the key for their control-taking ceremony. Alternatively, pullback moves need to break the 1.1400 support level to recall the bears.  Following that, a quick slump to the January 1985 peak of 1.1300 can’t be ruled out.

Overall, GBP/USD remains on the bear’s radar but a short-term rebound can’t be ruled out.

GBP/USD fell to 1.1405 overnight while the DXY, an index that measures the greenback vs. a basket of currencies, surged to a fresh bull cycle high of 110.786, falling just shy of a weekly 2002 level.  In this regard, the Bank of England will make for an important event as the UK faces months of astoundingly high inflation levels.

Bearish momentum on daily chart intact but shows tentative signs of fading while RSI shows early signs of turnaround from oversold conditions

1.4000 Price Playing a Defensive Role For GBPUSD

Sep 08 2022