Key events today:

20.08 18:00 UTC: USD – Release of the FOMC meeting minutes.

On Wednesday, the GBP/USD pair continues to decline for the third consecutive day, marking the fourth negative session out of the last five, dropping to its lowest level in more than a week during the Asian session.

From a technical perspective, last week’s failure near the 1.3600 mark led to the formation of a bearish double top pattern. The subsequent drop below the 23.6% Fibonacci retracement level of the recent rally from the 1.3140 area, or the lowest point since mid-April reached earlier this month, confirms the likelihood of further losses.

Thus, any additional decline is likely to attract some buyers near the support zone at 1.3450, which should help limit the downside for GBP/USD around the 1.3420-1.3415 area, or the 38.2% Fibonacci retracement level.

On the other hand, an attempt to recover above the 23.6% Fibonacci retracement level and the psychological 1.3500 mark may face resistance near the overnight high around the 1.3530 area. Sustained strength above this level could lift GBP/USD toward the 1.3575-1.3580 barrier, above which bulls may attempt another push to break through 1.3600.

Recommendations: SELL 1.3475, SL 1.3530, TP 1.3420.