GBP/USD technical analysis: Drops to fresh multi-month lows, remains vulnerable
|• The GBP/USD pair remained under some selling pressure on Thursday and finally broke down of its Asian session consolidation phase, refreshing three-month lows in the last hour.
• The fact that the UK cross-party talks have failed to produce any real compromise or resolve the current Brexit impasse has been one of the key factors taking its toll on the British Pound.
Given this week’s slide below the very important 200-day SMA and a subsequent acceptance below the 1.2900 handle – nearing a support marked by 50% Fibo. level of the 1.2396-1.3381 up-move, clearly suggests that the ongoing downward trajectory might still be far from over.
The pair has now dropped to test a short-term trend line support extending from early-March through late-April swing lows, albeit oversold conditions on 4-hourly charts now seemed to be the only factor helping limit further downside, at least for the time being.
Meanwhile, oscillators on the daily chart are still far from falling into the oversold territory and hence, a subsequent slide below the mentioned trend-line support might turn the pair vulnerable to break below the 1.2800 handle and test mid-Feb. swing lows near the 1.2775 region.
GBP/USD daily chart
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