• GBP/USD rebounded on Monday as falling oil prices and easing geopolitical risk concerns and reducing demand for the greenback.
• U.S. crude futures dropped more than $4, hitting an intra-day low of $94.31 per barrel, as markets reacted to shifting expectations around supply risks and energy demand..
• The risk-sensitive British pound also drew support from stronger equity markets, with the S&P 500 rising about 1%, reflecting improved investor sentiment and a move toward risk assets.
• Investors are also awaiting major central bank decisions, with the Federal Reserve widely expected to hold interest rates steady on Wednesday, followed by the Bank of England, which is also anticipated to keep rates unchanged on Thursday.
• The Federal Reserve is widely expected to hold rates on Wednesday, with policymakers likely to adopt a cautious, possibly hawkish tone amid the ongoing oil shock.
• Immediate resistance is located at 1.3480(50%fib), any close above will push the pair towards 1.3200(Psychological level).
• Strong support is seen at 1.3241(38.2%fib) and break below could take the pair towards 1.3179(Lower BB).
Recommendation: Good to buy on around 1.3320 with stop loss of 1.3250 and target price of 1.3380
