GBP/USD: Downward correction could extend if 1.3440 support turns into resistance

GBP/USD has turned south after testing 1.3500 on Wednesday. The technical outlook suggests that the cable could have a tough time regathering its strength but buyers could look to reclaim control as long as key support levels remain intact, FXStreet’s Eren Sengezer reports.

Buyers are likely to try to reclaim control as long as 1.3400 holds

“The 20-period SMA on the four-hour chart and the trend line form the initial support at 1.3440 and additional losses toward 1.3400 (psychological level, static level) could be witnessed if that level turns into resistance.” 

“On the upside, 1.3500 (psychological level, daily high) aligns as initial resistance before 1.3550 (static level, former support).”