Sterling Fails at Key Resistance as Selling Pressure Returns 21/5/2026

GBP/USD Technical Analysis

Negative price action has returned to dominate the GBP/USD pair after it ran into the pivotal resistance at 1.3460, which forced the pair to relinquish its recent gains.

Technical Outlook – 4-Hour Timeframe:

On the short-term horizon, the simple moving averages continue to function as dynamic resistance barriers, imposing downward pressure on the price.

On the flip side, the Relative Strength Index (RSI) is broadcasting clear negative signals, coinciding with a bearish divergence between the price action and the underlying technical indicators. This configuration lends weight to the likelihood that the pair will face renewed selling pressure over the coming hours.

Expected Scenarios:

Bearish (Most Likely) Scenario:

As long as trading remains capped below the 1.3465 resistance ceiling, the bearish bias will retain the upper hand, with 1.3400 set as the initial target. A decisive break beneath 1.3385 would unlock the path toward further declines targeting 1.3335 as the subsequent level.

Bullish Scenario:

Conversely, a decisive breakout above the 1.3470 resistance would reignite temporary upside momentum, with 1.3510 emerging as the initial target.

Risk Alert: Risk levels remain elevated amid persistent trade frictions and geopolitical tensions — all scenarios should be considered plausible.

Trading CFDs involves risks, and therefore all scenarios may be plausible. The information provided above is not a recommendation to sell or buy but rather an explanatory reading of price movement on the chart.

S1: 1.3385	R1: 1.3470
S2: 1.3335	R2: 1.3510
S3: 1.3295	R3: 1.3560