GBPUSD recently fell through support at the 1.3800 major psychological mark and appears to be retesting this broken support level. If it holds as resistance, price could resume the slide to the swing low or lower.

The 100 SMA is below the 200 SMA to confirm that the path of least resistance is to the downside or that the selloff is likely to resume. The 100 SMA is near the 50% Fib to add to its strength as resistance in the event of a higher correction while the 200 SMA is closer to the 61.8% Fib and 1.3900 mark.

Stochastic is already indicating overbought conditions or exhaustion among buyers. Turning lower would mean that sellers are taking over. Meanwhile, RSI has some room to climb before reaching the overbought zone, so buyers might still have a bit of energy left for a higher pullback.

Only low-tier reports are due from the UK economy for today and the rest of the week while the dollar has the NFP report and leading jobs indicators to contend with. A handful of FOMC members are also lined up to have speeches this week, although last week’s testimonies didn’t really result to big dollar moves.

Analysts are expecting even stronger US employment gains for March, which might mean more upside for the US currency as it could prompt the Fed to tighten earlier than expected. Note that this comes after a stronger than expected NFP release for February, as the jobs market appears to be recovering from the pandemic.

Keep in mind, though, that the UK appears to be on much better footing when it comes to keeping COVID-19 cases in check and with its vaccination efforts. Further progress in this regard could mean more demand for the British currency, especially since the BOE brushed off expectations of negative interest rates.