GBP/USD Price Analysis: Bulls stall near 1.3900 as US-UK trade talk halts

• GBP/USD failed to capitalise on the gains of the previous week and remain confined around 1.3900.
• Bulls met a strong resistance barrier near the 1.3900 mark.
• Momentum oscillator is in oversold zone with a bullish crossover.

GBP/USD consolidates gains for the previous two sessions on Tuesday morning’s Asian session. The pair moves in a narrow trading range ahead of the US Consumer Price Index (CPI) data.

The pair fades out its rally after the highly anticipated US-UK trade deals hope dashed out after reports surfaced no agreement was likely for at least two years.

GBP/USD daily chart

On the daily chart, the formation of Doji candlesticks near the 1.3900 mark, reflects indecisiveness among the traders.

If the  pair fails to hold onto the intraday gains, then it could drop toward the 20-day Simple Moving Average (SMA) at 1.3870.

The next lower target would be the previous day’s low at 1.3839 followed by the 1.3810 horizontal support level.

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 1.3920  and the 1.3950  horizontal resistance levels.

Next, the market participants will march toward June 24  high at the 1.3986 level.

GBP/USD additional levels