GBP/USD slides back from monthly highs close to 1.3400, eyes test of 1.3300 support area
GBP/USD continues to hit a brick wall at 1.3400, with the pair unable to surpass Asia session highs at 1.3398 during this morning’s European session before the sellers came in drove the action back as low as the 1.3320s. The latest downside moves put GBP amongst the worst performers on the day out of the G10 currencies (with only NOK and SEK doing worse). Currently, cable trades with losses of around 40 pips on the day or 0.3%.
GBP/USD analysis: Remains below weekly R2
Since Wednesday, the GBP/USD exchange rate has been testing the resistance level formed by the weekly R1 at 1.3402.
It is likely that the currency pair could gain support from the 55– and 100-hour SMAs, as well the weekly R1 in the 1.3350 area. Thus, some upside potential could prevail in the market.
This article was originally published by Fxstreet.com. Read the original article here.