GBP/USD stays under heavy bearish pressure in the American session and trades deep in the red below 1.3100. Cautious comments from BOE Governor Bailey on rate outlook and the broad-based dollar strength cause the pair to push lower on Monday.
GBP/USD is trading below 1.3160 (Fibonacci 38.2% retracement of the latest downtrend) and the Relative Strength Index (RSI) indicator on the four-hour chartstays near 40, suggesting that the pair has more room on the downside before turning technically oversold.
On a bullish note, the pair holds above the 100-period SMA for the time being. Nevertheless, sellers are likely to retain control of GBP/USD's action unless 1.3160 turns into support.
On the downside, 1.3130 (static level, daily low) aligns as interim support before the pair could target 1.3100 (psychological level, static level). Resistances align at 1.3160, 1.3180 (50-period SMA) and 1.3200 (psychological level, Fibonacci 50% retracement).