GBP/USD Forecast: Poised to lose the 1.3500 level

Valeria Bednarik FXStreet

GBP/USD Current price: 1.3585

Pound was weighed by the latest restrictive measures in the United Kingdom.
The UK macroeconomic calendar has nothing to offer until next Wednesday.
GBP/USD is at risk of falling further and losing the 1.3500 mark.

The GBP/USD pair is ending the day little changed in the 1.3580 price zone but fell to a fresh one-week low of 1.3519. Weekend news related to more travel restrictions in the UK due to the coronavirus pandemic and the absence of relevant local data pushed the pound lower. On a positive note, the UK plans to speed up vaccination. Nadhim Zahawi, the Minister for COVID Vaccine Deployment, said that everyone in the UK would be offered a vaccine by September.

Meanwhile, the EU announced it would seek an extension to the deadline by which the free trade agreement with the UK must be ratified, from the end of February to later in April. The UK won’t release macroeconomic data this Tuesday.

GBP/USD short-term technical outlook

The GBP/USD pair is at risk of extending its decline in the near-term. The 4-hour chart shows that it’s struggling around its 100 SMA, while the 20 SMA heads lower above the current level. Technical indicators have bounced from daily lows, but remain within negative levels, lacking momentum. Further declines sub-1.3500 are expected on a break below the mentioned daily low.

Support levels: 1.3520 1.3465 1.3410

Resistance levels: 1.3615 1.3660 1.3710

View Live Chart for the GBP/USD

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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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