Extending its reversal from Thursday's weekly high, the GBP/USD pair is now sliding farther below 1.3000 handle.
Currently trading at a fresh session low around 1.2960 region, the pair came under intense selling pressure after comments from UK foreign minister Boris Johnson that Article 50 would be triggered in early 2017 resurfaced uncertainty over Brexit-led UK economic fallout.
Moreover, possibilities of stops getting triggered on a sustained drop back below 1.3000 could also be one of the factors contributing to the pair's ongoing sharp slide and dragging it back close to monthly lows support near 1.2950-45 area touched on Wednesday.
As Carol Harmer, Founder at charmertradingacademy.com, mentioned in her analysis that a break below 1.2975 support, "there will look to be further downside pressure evident....We would then expect the market to weaken down towards 1.2955/45 and even down there we would be buyers...We would only worry about longs if we lost 1.2880...."
Technical outlook
Valeria Bednarik, Chief Analyst at FXStreet, notes, "A break below the mentioned low, should result in the pair retesting the weekly low of 1.2944, with further slides below this past exposing the 1.2880 price zone. Selling interest is capping the upside around 1.3035, and it will take an advance above this last to revert the short term negative tone and see the pair recovering up to 1.3065."
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
US Nonfarm Payrolls surprised to the downside in April, showing a gain of 175K jobs – LIVE
The job creation in the US economy seems to have slowed its pace after Nonfarm Payrolls figures reported an increase of 175K jobs in April, coming in short of consensus for a 243K gain.
EUR/USD rises to daily tops past 1.0800 post-NFP
The selling bias in the Greenback gathers extra pace on Friday after the US economy created fewer jobs than initially estimated in April, lifting EUR/USD to the area of fresh peaks above 1.0800.
GBP/USD surpasses 1.2600 after disheartening US Payrolls
The resumption of the downward pressure in the US Dollar motivates GBP/USD to extend its earlier advance to the area beyond 1.2600 the figure in the wake of the release of US NFP.
Gold climbs to new highs above $2,300 on poor NFP prints
The precious metal maintains its bullish stance and breaks above the $2,300 barrier on Friday after US Nonfarm Payrolls showed the economy added fewer jobs than expected during last month.
XRP edges up after week-long decline as Ripple files letter in reply to SEC’s motion
Ripple filed a letter to the court to support its April 22 motion to strike new expert materials. The legal clash concerns whether SEC accountant Andrea Fox's testimony should be treated as a summary or expert witness.