GBP/USD Forecast: looking for 1.2000
|Pound's decline extends this Tuesday, still weighed by renewed fears over a "hard Brexit," with the GBP/USD pair falling down to 1.2106. With no macroeconomic news coming from Europe or the UK, majors trade accordingly to market's mood, with the American dollar trying to recover some of the ground lost at the beginning of the week, finding support in a moderate positive tone coming from stocks.
The GBP/USD pair, however, is playing a different game, unable to advance during the past Asian session, in spite of broad dollar's weakness. The pair is short term oversold, yet there are no signs it may change course any time soon. Technically, the 4 hours chart shows that the 20 SMA gained bearish momentum well above the current price, while technical indicators are turning lower after a period of consolidation in extreme oversold territory, favoring lower lows for today.
The pair has a strong static support at 1.2088, October 25th low, and a break below it should result in a bearish acceleration, initially towards 1.2050, but aiming closer to 1.2000. The immediate short term resistance comes at 1.2145, followed by 1.2185. Gains beyond this last seem unlikely for today, but could result in a continued advance up to the 1.2230/50 price zone.
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