GBP/USD has managed to regain its traction before testing 1.3500. But as FXStreet’s Eren Sengezer notes, the pound stays vulnerable and needs to break above 1.3560 to alleviate downside pressure.

1.3520 aligns as the next bearish target

“In order to push higher toward 1.3600 (psychological level) and 1.3620 (static level), the pair needs to rise above 1.3560 (Fibonacci 23.6% retracement level of the latest uptrend) and start using that level as support.” 

“On the downside, 1.3520 (Fibonacci 38.2% retracement, 100-period SMA) aligns as the next bearish target. In case a four-hour candle closes below that level, additional losses toward 1.3500 (psychological level, Fibonacci 50 retracement) and 1.3460 (Fibonacci 61.8% retracement) could be witnessed.”