• GBP/USD reverses Friday’s rebound, two-month lows back in sight.
  • Cautious BOE, USD bounce and Brexit woes weigh on the cable.
  • Bearish daily RSI points to more weakness on the cards.

GBP/USD is reversing Friday’s swift pullback, as the bears fight back control, looking to retest the critical demand area around 1.3425.

The mixed market sentiment combined with escalating Brexit concerns take the wind out of GBP/USD brief recovery from two-month lows of 1.3424 reached Friday. Brexit News: UK appears set to trigger Article 16

Meanwhile, Bank of England (BOE) Governor Andrew Bailey’s weekend comments also undermine the sentiment around the pound. “I don’t think it’s our job to steer markets day by day and week by week,” Bailey told Bloomberg TV.

Next of relevance for the major remains the speeches by the Fed and BOE central banks’ Chiefs, scheduled later on Monday.

Looking at GBP/USD’s daily chart, the bears are looking to test the rising trendline support at 1.3427 after the recovery faltered near 1.3500.

A daily closing below the support line could fuel a fresh drop towards the 1.3411 September lows. Further south, the 1.3400 round number could be threatened.

The 14-day Relative Strength Index (RSI) is edging lower below the midline, keeping the bearish potential intact.

GBP/USD: Daily chart

On the upside, the recovery needs to find acceptance above 1.3500 to take on the previous support now resistance at 1.3559.

The next significant resistance awaits at the 1.3600 psychological mark, which was a pivotal support a week ago.

GBP/USD: Additional levels to consider


Today last price 1.3477
Today Daily Change -0.0015
Today Daily Change % -0.11
Today daily open 1.3499
Daily SMA20 1.3693
Daily SMA50 1.3701
Daily SMA100 1.3761
Daily SMA200 1.3849
Previous Daily High 1.3509
Previous Daily Low 1.3424
Previous Weekly High 1.3698
Previous Weekly Low 1.3424
Previous Monthly High 1.3834
Previous Monthly Low 1.3434
Daily Fibonacci 38.2% 1.3477
Daily Fibonacci 61.8% 1.3457
Daily Pivot Point S1 1.3446
Daily Pivot Point S2 1.3393
Daily Pivot Point S3 1.3361
Daily Pivot Point R1 1.353
Daily Pivot Point R2 1.3562
Daily Pivot Point R3 1.3615



Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news Join Telegram

Recommended content

Recommended content

Editors’ Picks

EUR/USD holds above 1.0700 after US inflation data

EUR/USD holds above 1.0700 after US inflation data

EUR/USD stays in the lower half of its daily range but continues to trade above 1.0700 in the early American session on Friday. The data from the US showed that the annual Core PCE Price Index declined to 4.9% in April as expected, making it difficult for the dollar to gather strength.


GBP/USD trades above 1.2600 as dollar struggles to find demand

GBP/USD trades above 1.2600 as dollar struggles to find demand

GBP/USD clings to daily gains above 1.2600 and remains on track to end the week in positive territory. The greenback struggles to attract investors after the data from the US showed that PCE inflation softened in April. 


Gold pulls away from daily highs, holds above $1,850

Gold pulls away from daily highs, holds above $1,850

Gold has lost its traction in the second half of the day on Friday and declined toward the $1,850 area. The benchmark 10-year US Treasury bond yield staged a modest rebound on the US PCE inflation data, not allowing XAU/USD to preserve its bullish momentum.

Gold News

Terra’s LUNA 2.0 support expands with Binance and Kraken welcoming the airdrop, here’s how you need to prepare

Terra’s LUNA 2.0 support expands with Binance and Kraken welcoming the airdrop, here’s how you need to prepare

Terra’s LUNA fork proposal has passed with 65.5% votes, Revival Plan 2 in action without algorithmic stablecoin UST. LUNA price could wipe out losses incurred by holders in the colossal crash of LUNC and UST. 

Read more

FXStreet Premium users exceed expectations

FXStreet Premium users exceed expectations

Tap into our 20 years Forex trading experience and get ahead of the markets. Maximize our actionable content, be part of our community, and chat with our experts. Join FXStreet Premium today!