GBP/USD to extend its recovery if the 1.3440 level turns into support

GBP/USD seems to have settled comfortably above 1.3400 early Tuesday. As FXStreet’s Eren Sengezer notes, cable looks to extend recovery to 1.3500.

Additional recovery gains toward 1.3500 in case buyers claim 1.3440

“In case market participants are convinced of Russia's willingness to look for a diplomatic solution to the conflict, the pound could continue to gather strength against the relatively safer dollar. On the flip side, the greenback is likely to attract investors if there is a negative shift in risk sentiment.”

“An ascending triangle seems to have formed on the four-hour chart. The triangle resistance is located at 1.3440 and it could be assessed as a bullish sign if this level turns into support.”

“On the upside, 1.3500 (psychological level) could be seen as the next target ahead of 1.3540 (100-period SMA, 200-period SMA).”

“Supports are located at 1.3400 (psychological level, 20-period SMA, ascending trend line), 1.3340 (static support) and 1.3300 (psychological level).”