GBP/USD has steadied near 1.32 following Wednesday's decline. Sellers could take action in case the pair drops below 1.3160, FXStreet’s Eren Sengezer reports.

Sellers await a drop below 1.3160

“Several FOMC members, including Atlanta Fed President Raphael Bostic and Fed Governor Christopher Waller, will be delivering speeches. Hawkish Fed commentary has been helping the dollar outperform its rivals by lifting US T-bond yields higher and a similar market reaction could be witnessed in the second half of the day.”

“In order to attract bulls, GBP/USD needs to reclaim 1.32 (psychological level, Fibonacci 50% retracement of the latest downtrend) and start using that level as support. In that case, the pair could regain its traction and eye 1.3250 (Fibonacci 61.8% retracement) and 1.33 (psychological level, weekly high).”

“On the downside, key support aligns at 1.3160 (Fibonacci 38.2% retracement, 100-period SMA on the four-hour chart). With a four-hour close below that level, 1.31 (psychological level) could become the next bearish target.”