Key Highlights
- GBP/USD is refreshing intraday high while extending recovery moves from 1.3429.
- A three-month-old ascending trend line adds to the downside filters.
GBP/USD trims the biggest losses in one week as buyers battle intraday high near 1.3500. Britain registers record high COVID-19 cases. The study suggests the need to vaccinate two million people a week to prevent a third wave. GBP/USD rose to 1.348 during Tuesday's Asian session.
The pair is trading not far from the previous daily low at 1.3428 and at risk of extending its decline. On the 4-hour chart, there was a downside correction below the 1.3500 resistance level, which coincides with the Fibonacci retracement levels. In the meantime, the formation of the bearish divergence (MACD) suggests a reversal to the south. The pair could extend its slump to 1.330
On the upside, the main resistance is near the 1.3600 zone. A close above the 1.3600 level is a must for the upside continuation. In case the quote manages to cross 1.3600 on a daily closing, it will need to pierce the monthly peak around 1.3625 before eyeing the March 2018 low near 1.3710.
