GBP/USD: breaking lower, 1.3320 next possible bearish target

Valeria Bednarik FXStreet

GBP/USD Current price: 1.3420

The GBP/USD pair extended its decline to fresh 2-week lows on broad dollar's strength. The American currency benefited at the beginning of the day by a peak of risk aversion, spurred by escalating tensions between North Korea and the US. But the greenback maintained the positive tone afterwards, now rising on its own ahead of Wall Street's opening. In the data front, the UK had little to offer so far this week, with the most relevant figure to be release on Wednesday, a revision of Q2 GDP. The fourth round of Brexit negotiations is once again heading nowhere, with EU representatives still looking for progress in issues such as the Brexit bill and citizens' right, before moving forward. The pair presents a bearish stance, although still lacking downward momentum, as in the 4 hours chart, the price is slowly slipping below a strong Fibonacci level, now the immediate resistance at 1.3450, while moving further below a still horizontal 20 SMA. In the same chart, technical indicators hold within negative territory, but with limited bearish strength, keeping the risk towards the downside anyway, and favoring a decline towards 1.3320, the 38.2% retracement of the latest bullish run.

Support levels: 1.3405 1.3370 1.3320

Resistance levels: 1.3450 1.3490 1.3530

View Live Chart for the GBP/USD

Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

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