GBP/USD Price Forecast: Bears flirt with monthly low, near 1.3480-1.3470 confluence
The GBP/USD pair comes under heavy selling at the start of a new week and drops to the lower end of its monthly range, near the 1.3480 region during the first half of the European session.
The GBP/USD currency pair experienced a decline at the beginning of a new week, dropping to the lower part of its monthly range near 1.3480-1.3470. This support zone consists of the 50% Fibonacci retracement level of the July-August uptrend and the 100-day Exponential Moving Average (EMA). Bearish traders may hesitate to make aggressive bets before major central bank announcements this week, including the US Federal Reserve (Fed) decision on Wednesday and the Bank of England (BoE) meeting on Thursday.
The focus lies on central banks' policy outlook, which could potentially boost the GBP/USD pair and signal the next directional move. Technical indicators like the Moving Average Convergence Divergence (MACD) and Relative Strength Index (RSI) suggest a weakening of bullish momentum, with the indicator values nearing neutral. A convincing break below the 1.3480-1.3470 confluence could signal further depreciation of the GBP/USD pair, potentially reaching lower Fibonacci support levels at 1.3420, 1.3352, and the cycle low near 1.3265.
Conversely, a break above the 1.3516 resistance level (38.2% retracement) and 1.3575 (23.6% retracement) could open the way for the pair to move toward the broader structural high near 1.3671.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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