GBP/USD moves off lows, but remains vulnerable

GBP/USD has recovered slightly from fresh 1-month lows over the last hours, although the overall bias remains negative amid concerns over a “hard” Brexit.

GBP/USD dropped more than a hundred pips throughout the day and bottomed out at 1.2945, level last seen Aug 16. The pair recovered a few pips and it was last trading at 1.2974, recording a 0.42% loss on the day.

However, the cautious mood prevails as investors attention turn to Federal Reserve statement on Wednesday, which might ensure quiet trading over the last sessions.

GBP/USD technical levels

As for technical levels, immediate supports are seen at 1.2900 (psychological level), 1.2864 (Aug 15 low) and 1.2796 (Jul 6 low). On the other hand, next resistances could be found at 1.3068 (Sep 20 high), 1.3090 (Sep 19 high) and 1.3159 (50-day SMA).