GBP/USD Price Analysis: Remains vulnerable to slide further, possibly towards sub-1.2900 levels
|- GBP/USD extends the previous session’s pullback and weakens farther below 1.30 mark.
- Bears are likely to aim towards testing a short-term descending trend-channel support.
The GBP/USD pair remained depressed for the second consecutive session and extended the previous session's sharp intraday pullback from levels beyond the 1.3100 round-figure mark.
The pair weakened farther below the key 1.30 psychological mark, albeit has managed to find some support ahead of monthly swing lows, around the 1.2950-45 region set on January 14.
Meanwhile, the recent price action over the past three weeks or so has been confined well within a descending trend-channel formation, which points to a well-established bearish trend.
Technical indicators on hourly/daily charts maintained their negative bias and further support prospects for an extension of the recent sharp pullback from the post-UK election swing highs.
Some follow-through selling below monthly lows will reaffirm the bearish outlook and accelerate the slide towards sub-1.2900 levels, or the lower end of the descending trend channel.
On the flip side, the 1.3000-1.3010 region now seems to act as an immediate resistance, above which the pair could climb towards the 1.3050-55 zone en-route the 1.3085 supply zone (channel resistance).
GBP/USD 4-hourly chart
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.