GBP/USD to come under renewed bearish pressure with a drop below 1.3360

GBP/USD has lost its recovery momentum in the early European session. Sellers are likely to retain control unless the market mood improves ahead of the weekend, FXStreet’s Eren Sengezer reports.

GBP/USD to stay on the back foot

“A significant positive shift risk sentiment is unlikely to be witnessed in the short-term and GBP/USD recovery attempts should remain as technical corrections.”

“Static support seems to have formed at 1.3360. In case buyers give up on this level, GBP/USD could extend its slide toward 1.3300 (psychological level) and 1.3280 (static level, multi-month low).”

“On the upside, cable could extend its recovery if it manages to rise above 1.3420 (static level) and start using it as support. In that case, 1.3500 (psychological level) aligns as the next bullish target.”