GBP/USD has been moving in a tight channel since the beginning of the week. As FXStreet’s Eren Sengezer notes, the pair needs to move out of the 1.3500-1.3560 band to determine its next direction.

Sellers to take action in case 1.3500 support fails

“On the downside, 1.3520 (Fibonacci 38.2% retracement level of the latest uptrend) aligns as interim support before 1.3500 (psychological level, 50-period SMA, Fibonacci 50% retracement). In case a four-hour candle closes below the latter, cable could stretch lower toward 1.3460 (Fibonacci 61.8% retracement).”

“In order to regain its bullish momentum and target 1.3600 (psychological level), GBP/USD needs to rise above 1.3560 (Fibonacci 23.6% retracement) and starts using that level as support.”