GBP/USD Forecast: break below 1.2910 required now

Valeria Bednarik FXStreet

A short-lived recovery in the GBP/USD pair was quickly reverted as the pair approached to the 1.3000 level early Europe, as selling interest around the Sterling remains strong. The dollar is marginally higher against most of its rivals, although the yen continues outperforming, resuming its advance as local shares plunge. There was no macroeconomic catalyst beyond this intraday decline, as the UK calendar will remain scarce this week, with attention centered in Friday's final Q2 GDP.

Technically, the 4 hours charts shows that the price was unable to advance beyond a now bearish 20 SMA, while indicators have turned south within bearish territory, indicating that the risk remains towards the downside. Still, a downward acceleration through 1.2910 is required to confirm further slides, with 1.2870 as the next intraday bearish target. A daily close below the 1.2900 level, will fuel chances of a retest of the post-Brexit low, at 1.2793.

Approaches to the 1.3000 region will continue to attract selling interest, even with disappointing US data, as selling at higher levels is the name of the game around the pair.

View live chart of 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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