Extends recovery to near 20-day EMA as US Dollar weakens

GBP/USD trades firmly at around 1.3565 at the press time. The pair holds around the 20-day Exponential Moving Average, which is at 1.3562, capping directional conviction.

Price action has stabilized after the pullback from mid-month highs, with the latest candles clustering around the average and signaling consolidation rather than a clear trend extension.

The 14-day Relative Strength Index (RSI) in the 40.00-60.00 range shows neutral momentum, reinforcing a sideways tone.

Initial support emerges at the February 19 low of 1.3434, the nearest swing low, and a downside move towards the January 19 low at 1.3344 is possible if the price fails to hold the same. On the upside, the pair could attempt to revisit an almost four-year high of 1.3869 if it delivers a decisive breakout above the February 11 high of 1.3712.