GBP/USD Price Analysis: Bears flirting with daily lows, descending channel support

GBP/USD edges lower along a short-term descending channel on hourly charts.
Bears are likely to wait for some follow-through weakness below the 1.2500 mark.

Haresh Menghani FXStreet

The GBP/USD pair maintained its offered tone through the mid-European session and is currently placed near daily lows, around the 1.2530-25 region. The mentioned region marks the lower end of a descending trend-channel formation on the 1-hourly chart.

This is closely followed the key 1.2500 psychological mark, coinciding with the 38.2% Fibonacci level of the 1.2247-1.2644 move up. Failure to defend the channel support might be seen as a fresh trigger for bearish traders and prompt some technical selling.

The pair might then accelerate the fall further towards 50% Fibo. level support near mid-1.2400s before extending the downward trajectory towards challenging to 1.2400 confluence region. The latter comprises of 200-hour SMA and 61.8% Fibo. level.

Some follow-through selling will negate any near-term positive bias and pave the way for the resumption of the pair's prior well-established bearish trend.

On the flip side, the 1.2570 region – representing the trend-channel resistance – might continue to keep a lid on any attempted move up. A convincing break through should lift the pair back above the 1.2600 mark, towards the 1.2640-45 supply zone.

The said hurdle marks a double top region near the very important 200-day SMA, tested twice in April. This, in turn, should act as a key pivotal point that should help traders determine the pair's next leg of a directional move.

GBP/USD 1-hourly chart

Technical levels to watch

GBP/USD

Overview
Today last price	1.2541
Today Daily Change	-0.0052
Today Daily Change %	-0.41
Today daily open	1.2593

Trends
Daily SMA20	1.2421
Daily SMA50	1.2452
Daily SMA100	1.2752
Daily SMA200	1.2654

Levels
Previous Daily High	1.2644
Previous Daily Low	1.2429
Previous Weekly High	1.2503
Previous Weekly Low	1.2247
Previous Monthly High	1.2648
Previous Monthly Low	1.2165
Daily Fibonacci 38.2%	1.2562
Daily Fibonacci 61.8%	1.2511
Daily Pivot Point S1	1.2467
Daily Pivot Point S2	1.2341
Daily Pivot Point S3	1.2252
Daily Pivot Point R1	1.2682
Daily Pivot Point R2	1.277
Daily Pivot Point R3	1.2896

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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