GBP/USD has reversed its direction after falling all the way down to 1.3500 and recovered above 1.3550. Resolution of the Russia-Ukraine conflict could open the door to 1.3600, FXStreet’s Eren Sengezer reports.

1.3520 seen as the first support

“Market participants will keep a close eye on geopolitics and GBP/USD could face renewed bearish pressure if safe-haven flows start to flood the markets.”

“GBP/USD needs to clear 1.3550/1.3560 resistance (200-period SMA, Fibonacci 23.6% retracement) to extend its recovery. Above that level, 1.3600 (psychological level, static level) aligns as the next bullish target ahead of 1.3620 (static level).”

“On the downside, 1.3520 (Fibonacci 38.2% retracement) could be seen as the first support before 1.3500 (psychological level, Fibonacci 50% retracement) and 1.3470 (Fibonacci 61.8% retracement).”

See: GBP/USD to slide below 1.34 towards 1.32 on a Russian invasion of Ukraine – Scotiabank