Abstract:GBP/USD seesaws around 1.3120, up 0.12% intraday after refreshing the 16-month low with a small downtick in early Asian session during Tuesday.
GBP/USD licks its wounds near the lowest levels since November 2020.
Oversold RSI conditions probe further downside, multiple levels marked since October 2020 guard recovery moves.
Although the oversold RSI conditions seem to have triggered the cable pair‘s latest rebound, the previous support line from October 2020, around 1.3170-80, restricts the quote’s further upside.
Even if the GBP/USD prices cross the 1.3180 immediate hurdle, a convergence of the 10-DMA and a descending trend line from February‘s peak will challenge the pair’s advances around 1.3330.
Alternatively, a clear downside break of the 1.3100 becomes necessary to send fresh invitations to GBP/USD bears.
Following that, 78.6% Fibonacci retracement (Fibo.) of September 2020 to February 2021 upside, near the 1.3010, as well as the 1.3000 psychological magnet, will be in focus.
Overall, GBP/USD remains on the bears radar despite the latest corrective pullback.
GBP/USD: Daily chart
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Wednesday's major data releases and macroeconomic events are expected to cause volatility to increase after another day of erratic trading in the financial markets. The Spring Budget for the UK will be released, and January Retail Sales figures for January will be made available by Eurostat. ADP Employment Change for February and January JOLTS Job Openings will be discussed later in the session on the US economic docket.
Major currency pairings are still trading in familiar ranges early on Tuesday after the erratic trading on Monday. The US economic docket for the American session will include the factory orders data for January and the ISM Services PMI survey for February. Final updates to the February PMI for the US, Germany, the UK, and the EU will also be released by S&P.
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