GBP/USD to extend the slide on a break below 1.2565
|GBP/USD once again failed near the 1.2665-70 supply zone, ahead of the 200-day SMA, and is seen trading now below the 1.26 level, down -0.2% on a day. FXStreet’s Haresh Menghani outlines the cable could extend its decline if breaks below the 1.2565 mark.
Key quotes
“Bulls are likely to wait for a sustained move beyond the 1.2665-70 region before positioning for any further appreciating move. The cable might then aim to challenge the very important 200-day SMA, around the 1.2700 mark, which coincides with the 61.8% Fibonacci level of the 1.3515-1.1412 downfall. A convincing breakthrough the mentioned confluence hurdle will be seen as a fresh trigger for bullish traders and pave the way for an extension of the recent positive momentum.”
“On the flip side, any subsequent pullback is likely to find some support near the previous day’s swing low, around the 1.2565 area. Failure to defend the mentioned support might turn the pair vulnerable to accelerate the fall back towards the key 1.2500 psychological mark. Some follow-through selling could accelerate the slide further towards the next major support near mid-1.2400s.”
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.