GBP/USD gained traction and erased its daily losses in the second half of the day on Monday. With the dollar struggling to preserve its strength amid recovering US stocks, the pair manages to hold its ground ahead of this week’s key central bank meetings.
The Relative Strength Index (RSI) indicator on the four-hour chart stays within a touching distance of 30. This suggests that the pair is about to turn technically oversold.
On the downside, 1.1350 (multi-decade lows) aligns as significant support. In case buyers fail to defend that level, additional losses toward 1.1300 could be witnessed.
1.1400 (psychological level, static level) aligns as first resistance. For sellers to move to the sidelines, GBP/USD needs to go into a consolidation phase above that level. In that case, the pair could extend its recovery toward 1.1450 (static level, 20-period SMA) and 1.1500 (psychological level, static level).
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