GBP/USD set to extend its slide toward the 1.31 level

GBP/USD has started to edge lower amid renewed dollar strength. 1.3130 aligns as interim support before the pair could target 1.3100, FXStreet’s Eren Sengezer reports.

Sellers to retain control of GBP/USD's action unless 1.3160 turns into support

“Bank of England's Governor Andrew Bailey will deliver a speech titled ‘Macroeconomic and Financial Stability in Changing Times’ at 11:00 GMT. In case Bailey hints that they will adopt a cautious stance with regards to future rate hikes, the pound could continue to weaken against its rivals. On the other hand, a hawkish tone could help GBP/USD stage a recovery.”

“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).”