GBP/USD Price Analysis: Bears await a sustained break below 1.2400 mark

GBP/USD remained under some selling pressure for the second straight session.
The set-up shifts back in favour of bears and supports prospects for a further slide.

Haresh Menghani FXStreet

The GBP/USD pair extended its recent rejection slide from the very important 200-day SMA and witnessed some follow-through selling for the second straight session on Monday.

The bearish pressure has now dragged the pair below 200-hour SMA, with bears now looking to extend the slide further below important pivotal support near the 1.2400 mark.

The mentioned level coincides with the 61.8% Fibonacci level of the 1.2247-1.2644 recent leg up, which if broken decisively might be seen as a fresh trigger for bearish traders.

The pair might then accelerate the slide further towards intermediate support near the 1.2355-50 region before eventually dropping to test the 1.2300 round-figure mark.

Meanwhile, oscillators on hourly charts have been drifting lower in the bearish territory and losing positive momentum on the daily chart, adding credence to the negative outlook.

On the flip side, any attempted recovery back above the 1.2425 region (200-hour SMA) might confront fresh supply, rather remain capped near 50% Fibo. level, around mid-1.2400s.

GBP/USD 1-hourly chart

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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