GBP/USD has extended its falls well below 1.3600, hitting the lowest since February. The rapid spread of the Delta covid variant in the UK and prospects of further deterioration weigh on the pound. Brexit issues add to the misery.
Pound/dollar is experiencing oversold conditions according to the Relative Strength Index on the four-hour chart. The RSI is below 30
In our most likely scenario, GBPUSD may experience a downward correction towards the first support level of 1.3600 If the pair falls below the first support level, we can expect a continued downtrend towards the second support level of 1.3560 with a continued downtrend towards 1.3500.
Alternatively, the GBPUSD pair may rise towards the first resistance level of 1.3670. If the pair manages to surpass the first resistance level, we should expect a continued surge towards the resistance level of 1.3750.
