The GBP/USD pair extends its recovery for the second straight day on Monday, supported by a weaker US Dollar amid dovish Federal Reserve expectations and improved market risk appetite. During the Asian session, the pair trades slightly above the mid-1.3300s, building on Friday’s rebound from around 1.3260 — its lowest level since early August.

Risk sentiment improved notably after US President Donald Trump rolled back his plan to impose 100% tariffs on Chinese imports from November 1. Combined with expectations for two more Fed rate cuts this year and concerns about a potential US government shutdown, the USD remains on the defensive. Meanwhile, bets that the Bank of England will hold rates steady continue to support the Pound.

From a technical standpoint, Friday’s break above the 23.6% Fibonacci retracement of the recent downtrend adds to the short-term positive outlook. However, bearish signals on the 4-hour and daily charts suggest traders should wait for sustained strength beyond the 38.2% Fibonacci level before committing to new bullish positions. A confirmed move above this zone could open the door toward the 1.3400 psychological mark and the 1.3420–1.3425 region, which aligns with the 200-hour SMA and the 61.8% retracement level.

On the downside, immediate support sits around 1.3330–1.3325 (23.6% Fibo.), followed by 1.3300 and the multi-month low near 1.3260. A decisive break below that area could signal a deeper correction toward 1.3200 and the 200-day SMA near 1.3175 — a key support zone for the broader trend.

Bias: Cautiously bullish while above 1.3300
Support: 1.3330, 1.3300, 1.3260
Resistance: 1.3400, 1.3425