- 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|
|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.