GBP/USD Slides Further Below 1.3550; Is More Downside Possible?

The GBP/USD pair opened the new week with a renewed round of selling, following up from where the pair ended last week. The main reason for selling on the Pound remains jitters from the local coronavirus epidemic situation in the country. The situation is sending traders into the safe-haven US Dollar and this has exerted pressure on the pair in Monday’s trading session. 

Fresh restrictions were imposed on the UK and at the moment, the administration of Pfizer’s coronavirus vaccine is yet to take effect against the onslaught of the virus into the UK. The UK has shut off all its borders and comments by the UK vaccine deployment minister on achieving full coverage by September 2021 failed to provide support for the pair.

Technical Levels to Watch

The GBPUSD’s decline met support at 1.35134. A short bounce has taken the pair off these levels. However, a breakdown of the current support brings in 1.34765 and 1.33951 into the picture. If the pair’s decline continues as part of the breakdown of the wedge pattern, then a push towards the price projection point of 1.32663 is to be expected. This move also takes out 1.33193.

On the flip side, an extension of the upside bounce is likely to target 1.36117 as the initial target, with 1.37025 and 1.37916 as a further upside target.

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GBP/USD Daily Chart

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