The GBPUSD pair experienced a significant pullback in recent days. After this year's highs at USD 1.4240 were set on February 24, a downward correction began. Currently, the downward movement has already exceeded 400 pips. However, today the declines have clearly slowed down. Today’;s rebound was partially caused by Bank of England governor Andrew Bailey who reiterated that the central bank's decision to ask the banks to make preparations within the next six months, in case it needs to use negative interest rates to provide further support, did not mean to imply anything about policymakers' intentions in that direction. It should be noted that the probability of introducing negative rates seems low. The United Kingdom is massively vaccinating its citizens against COVID-19, which should translate into a recovery in the British economy.
Looking at the D1 interval from a technical point of view, one can see that the price has hit an interesting support zone. The 1.3800 level is marked with the lower limit of the 1: 1 structure. In addition, this level is strengthened by 50 SMA which provided strong support in the past. If buyers manage to defend this support, then the downward correction may end and the price will return to the main uptrend.
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GBPUSD interval D1. Source: xStation5
