GBP/USD set to challenge next support at 1.3120

GBP/USD has declined toward key 1.3160 support early Monday. Next bearish target for the pair is located at 1.3120, FXStreet’s Eren Sengezer reports.

Additional losses are likely in case the 1.3160 level turns into resistance

“GBP/USD's downtrend that started in May 2021 ended at 1.3160 in December, highlighting the significance of this level. In case this support turns into resistance, the next bearish target aligns at 1.3120 (static level) ahead of 1.3100 (psychological level).”

“On the upside, the first resistance could be seen at 1.3200 (psychological level) before 1.3250 (static level) and 1.3270 (static level).”