GBP/USD Price Analysis: Bears target 1.3700 after rising wedge breakdown

• GBP/USD falls for the third straight session, downside risks remain.
• Rising wedge breakdown confirmed on the daily sticks on Tuesday.
• RSI remains bearish, allowing room for more declines.

GBP/USD is off the five-day troughs of 1.3756, as the sellers take a breather before resuming another leg to the downside.

The cable is extending its losing streak into the third straight session, as sellers try to find their footing below all the major Daily Moving Averages (DMA).

At the time of writing, the spot has breached the 21-DMA at 1.3777, trading at 1.3765, posting a 0.13% loss on the day.

The downside momentum picked up steam in the cable after it confirmed a rising wedge breakdown on the daily sticks a day before.

A daily closing below the 21-DMA will make it easier for the bears to extend their control towards 1.3700. Ahead of that, the September lows of 1.3731 could be retested.

The 14-day Relative Strength Index (RSI) currently trades at 47.35, suggesting that the weakness is likely to extend in the near term.

Further falls could call for a sharp sell-off towards the 1.3500 level.

GBP/USD: Daily chart

Alternatively, the GBP bulls need to recapture strong resistance around 1.3810 to unleash the additional upside.

That level is the confluence of the wedge support, 50 and 200-DMAs. The next significant hurdle is envisioned at Tuesday’s high of 1.3856.

GBP/USD: Additional levels to consider