- GBP/USD remained depressed for the second straight session and retreated further from YTD tops.
- The set-up seems to have shifted in favour of bears and supports prospects for additional weakness.
- Any attempted positive move might confront stiff resistance and remain capped near the 1.3360 region.
The GBP/USD pair continued losing ground through the mid-European session and slipped below a previous strong resistance breakpoint-turned-support, around the 1.3265-60 area.
The mentioned region coincided with 200-hour SMA and a subsequent weakness will shift the near-term bias back in favour of bearish traders. This, in turn, will pave the way for an extension of this week's corrective slide from the 1.3480 region, or YTD tops.
Meanwhile, technical indicators on hourly charts have been gaining negative traction and support prospects for additional weakness. However, oscillators on the daily chart – through have corrected from higher levels – are still holding in the bullish territory.
Mixed indicators on 4-hourly/daily charts warrant some caution for aggressive bearish traders and positioning for any further depreciating move. That said, some follow-through selling might still turn the pair vulnerable to accelerate the slide towards the 1.3200 mark.
On the flip side, the 1.3300 mark now becomes immediate strong resistance. Any subsequent positive move could get extended but seems more likely to run out of the steam and remain capped near the 1.3355-60 horizontal zone.
GBP/USD 1-hourly chart
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Technical levels to watch
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