GBP/USD back to 1.3200 after hitting fresh 31-year low

GBP/USD stretched to a fresh 31-year low of 1.3119 during the American session although it quickly returned to the 1.3200 area.

The pair has entered a quieter phase although not even close to be out of the woods as political and economic uncertainty continues to hit the pound following Brits decision to leave the European Union, which will be a long and painful process.

GBP/USD recovered from recent lows and continues to gravitate around the 1.32 mark, where it records a 3.2% daily loss following an 8% slump on Brexit Friday.

Speaking in Parliament, when asked about the prospects of another referendum David Cameron said he is not planning one. We have to implement the referendum result, he said.

GBP/USD technical levels

In terms of technical levels, support levels could be found at 1.3119 (Jun 27 low), 1.3100 and then 1.3000 (psychological levels). On the other hand, resistances are seen at 1.3482 (Jun 27 high), 1.3500 (psychological level) and not much until 1.3835 (Feb 29 2016 low).