GBP/USD has managed to recover modestly after dipping below 1.30. Cable is set to extend recovery as long as 1.30 holds, FXStreet’s Eren Sengezer reports.

GBP/USD could extend its correction in the short-term

“The lack of progress toward a ceasefire between Russia and Ukraine could delay a relief rally in markets and cause GBP/USD's recovery attempts to remain as technical corrections.”

“Interim resistance for GBP/USD seems to have formed at 1.3040 (static level) ahead of 1.3060 (static level, descending trend line). With a four-hour close above the latter, the pair could target 1.31(50-period SMA, static level).”

“Key support is located at 1.30 (psychological level). In case the cable drops below that level and starts using it as resistance, additional losses toward 1.2980 (April 8 low) and 1.29 (psychological level) could be witnessed.”