The GBP/USD pair attracted some sellers during the Asian session on Wednesday and eroded a part of its weekly gains recorded over the past two days, to the 1.3400 mark. The intraday downtick was sponsored by a modest US Dollar (USD) strength that dragged the spot prices below mid-1.3300s in the last hour.
From a technical perspective, the GBP/USD pair started the week showing some resilience near the 1.3250-1.3245 support and bounced off the 100-period Exponential Moving Average (SMA) on the 4-hourly chart. Moreover, oscillators on the daily/hourly charts are holding in the positive territory. This, in turn, suggests that any subsequent decline might be seen as a buying opportunity near the 1.3300 round-figure mark and remain limited.
However, a convincing break below the 1.3250-1.3245 important support might turn the GBP/USD pair vulnerable and set the stage for some meaningful correction from mid-1.3400s, or the highest level since February 2022, touched last month. The spot price might then accelerate the fall towards the 1.3200 level en-route the 1.3170-1.3165 support before eventually dropping to the 1.3100 round figure mark.
On the flip side, momentum beyond the 1.3400 handle might confront some resistance near the 1.3445 region, or multi-year tops. A sustained strength beyond the last will be seen as a fresh trigger for bullish traders and allow the GBP/USD pair to reclaim the 1.3500 psychological mark. The subsequent up move has the potential to lift the spot price further towards the 1.3570-1.3575 region en route to the 1.3600 round figure.(Newsmaker23)
Source: FXstreet
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