GBP/USD analysis: Pound tumbles sub-1.2100

Valeria Bednarik FXStreet

GBP/USD Current price: 1.2130

The British Pound tumbled against its American rival, printing a daily low of 1.2088, before settling around 1.2130 by the end of the day. Down for a fourth consecutive day, the GBP/USD pair keeps falling on fears about the consequences of a "hard Brexit." Brexit woes this Tuesday gyrated around a potentially constitutional matter, as the Parliament might challenge PM May right to start the process of withdrawing the UK from the EU without a vote of the Houses. Speculative interest is now eyeing a possible retest of Friday's wild swings' low that varies among retail brokers between 1.16 and 1.19, but implies anyway a bearish extension below the 1.2000 figure. From a technical point of view, the 4 hours chart shows that technical indicators maintain their sharp bearish slopes, despite being in extreme oversold territory, while the 20 SMA continues playing catch-up, accelerating lower far above the current level, and around 1.2380. Upward corrective moves will likely be seen now as selling opportunities, with the first line of sellers around 1.2225, the low set at the mentioned crazy slump.

Support levels: 1.2080 1.2035 1.1990

Resistance levels: 1.2150 1.2190 1.2225

View Live Chart for the GBP/USD

Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

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