GBP/USD is under pressure. On Monday, US stock indices posted losses for the second consecutive session.The US dollar maintained its upward momentum as the British pound and the euro were heavily sold. The pair stays below its key resistance at 1.3470 and remains capped by its descending 50-period moving average. At the same time, the relative strength index stays below its neutrality area at 50. In conclusion, the first target to the downside is therefore set at 1.3100. A break below this level would open the way to further weakness toward the horizontal support at 1.3000. In the alternative scenario, if the pair moves above the key resistance at 1.3470, that would call for further upside toward 1.3680 & 1.3790 as targets.

Trading recommendations:

The pair is trading below its pivot point. It is likely to trade in a lower range as long as it remains below the pivot point. Short positions are recommended with the first target at 1.3155. A break below this target will move the pair further downwards to 1.3055. The pivot point stands at 1.3470. In case the price moves in the opposite direction and bounces back from the support level, it will move above its pivot point. It is likely to move further to the upside. According to that scenario, long positions are recommended with the first target at 1.3680 and the second one at 1.3750.

Resistance levels: 1.3680, 1.3750, 1.3825

Support levels: 1.3155, 1.3055, 1.3