GBP/USD’s rebound from 1.3000 loses steam at 1.3075

The sterling fails to regain 1.3100, remains near mid-term lows.
Pound's recovery falters despite BoE rate hike expectations.
GBP/USD's downtrend could extend to 1.2500 – Scotiabank.

FXStreet Team FXStreet

The pound sterling remains slightly positive on Monday, buoyed by a moderate risk appetite, although its rebound from lows near 1.3000 has been capped below 1.3075.

Cable remains bearish at 16-month lows

The GBP/USD is trapped within a wider bearish trend following a three-week sell-off. The pair has depreciated nearly 5% from late February highs at 1.3640, reaching levels right above the 1.3000 mark for the first time since November 2020.

The sterling has seen a moderate increase on demand on Monday, favoured by a somewhat weaker dollar amid a mild sentiment improvement on the back of peace talks between Russia and Ukraine. Beyond that, investors’ expectations that the Bank of England’s will hike interest rates at next Thursday’s meeting have also been supportive of the GBP.

GBP/USD might extend its decline towards 1.2500 – Scotiabank

Regarding the near-term expectations, the FX Analysis Team at Scotiabank sees the pound extending its downtrend: “Cable aims for a break under 1.30. Sterling faces no clear support until the mid-1.28s that marked the lows of Oct/Nov of 2020, with losses possibly mounting quickly toward 1.25.”

Technical levels to watch

GBP/USD

Overview
Today last price	1.3053
Today Daily Change	0.0018
Today Daily Change %	0.14
Today daily open	1.3035

Trends
Daily SMA20	1.3382
Daily SMA50	1.3485
Daily SMA100	1.3452
Daily SMA200	1.3626

Levels
Previous Daily High	1.3125
Previous Daily Low	1.3028
Previous Weekly High	1.3246
Previous Weekly Low	1.3028
Previous Monthly High	1.3644
Previous Monthly Low	1.3273
Daily Fibonacci 38.2%	1.3065
Daily Fibonacci 61.8%	1.3088
Daily Pivot Point S1	1.3
Daily Pivot Point S2	1.2965
Daily Pivot Point S3	1.2903
Daily Pivot Point R1	1.3098
Daily Pivot Point R2	1.316
Daily Pivot Point R3	1.3195

Author

FXStreet Team

FXStreet

Composed of a group of economic journalists and FX experts, the FXStreet content team produces and oversees all content published on FXStreet. It provides a purely journalistic approach to the Forex market.

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