GBP/USD analysis: poised to extend its decline
|GBP/USD Current price: 1.2173
The British Pound fell sharply against all of its major rivals, hitting 1.2123 against the greenback, its lowest since late October, before bouncing modestly. Comments from UK's Prime Minister, Theresa May, revived fears of a "hard Brexit," as in a television interview, she somehow hinted that leaving the EU will also mean leaving the single market, as the government does not want to keep "bits" of EU membership, but seek for the “best possible deal for UK companies to be able to trade in and within the EU and European companies to operate and trade within the UK.” The GBP/USD pair reached extreme oversold conditions, but remains well below the 1.2200 level, unable to attract buyers, and poised to extend its decline, given that in the 4 hours chart, the price accelerated its slide far below a now bearish 20 SMA, the Momentum indicator keeps heading south, despite being in extreme oversold territory, whilst the RSI indicator holds around 32, losing its bearish strength, but far from reversing it. October 25th low, at 1.2088 is the level to watch, as a break below it will open doors for a test of the critical 1.2000 figure.
Support levels: 1.2125 1.2085 1.2050
Resistance levels: 1.2200 1.2240 1.2290
View Live Chart for the GBP/USD
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.