GBP/USD Forecast: break below 1.2830 level confirms continuation of bearish slide

The US Dollar preserved strong overnight gains, with the GBP/USD pair extending losses during Asian session on Wednesday and hitting 8-week low level of 1.2807. The pair came under some fresh selling pressure on Tuesday as investors started unwinding bearish USD bets in anticipation of a possible hawkish rhetoric from the Fed Chair Janet Yellen at the Jackson Hole Symposium. The British Pound showed little positive reaction to the UK data that showed public net borrowings fell by £0.8 billion in July and a better-than-expected CBI industrial order expectation index for August. Investors seemed holding back from buying the Sterling amid worries over negotiations on the Brexit terms. 

Today's UK economic docket again lacks any major market moving economic releases and hence, the pair remains vulnerable to extend its downward trajectory through European trading session. Later during the NA session, the release of New Home Sales data from the US might provide some opportunities for short-term traders. 

Technically, the pair has decisively broken below the 1.2830 minor support, marking 38.2% Fibonacci retracement level of 1.2109-1.3269 up-move, and also seems to have confirmed a fresh bearish break down below 100-day SMA. Bears would now be eyeing for a follow through weakness below the 1.2800 handle, below which the pair is likely to accelerate the fall towards an intermediate support near mid-1.2700s. The pair could eventually break below the 1.2700 handle and test 50% Fibonacci retracement level support near the 1.2685-80 region ahead of the very important 200-day SMA near the 1.2650 region. 

On the flip side, any recovery attempts back above the 1.2825-30 region now seems to confront resistance at 100-day SMA, near the 1.2880 region. Any subsequent up-move beyond the 1.2900 handle might remain capped at 1.2920-30 heavy supply zone.