GBP/USD broke below 1.3200 after testing 1.3300 earlier in the day, pressured by the negative shift witnessed in risk sentiment. UK Office for Budget Responsibility (OBR) announced that it lowered the 2021/2022 tax year growth expectation to 3.8% from 6%.
The Relative Strength Index (RSI) indicator on the four-hour chart holds well above 50 despite edging lower, suggesting that the recent decline is the correction of the latest upsurge.
On the downside, 1.3250 (Fibonacci 61.8% retracement of the latest downtrend) aligns as key support. If bulls continue to defend this level, the pair could eye 1.3300 (psychological level, daily high) before pushing higher toward 1.3350 (200-period SMA).
Below 1.3250, 1.3200 (psychological level, Fibonacci 50% retracement) could be seen as the next support ahead of 1.3170 (100-period SMA).
