GBP/USD technical analysis: Bears await a sustained break below weekly lows, around mid-1.2100s
- Brexit-related uncertainties continue to weigh on the British Pound.
- Weakness below weekly lows should pave way for further downside.
The GBP/USD pair this week's retracement slide from levels just above the 1.2300 round figure mark – a resistance marked by the top end of a short-term ascending trend-channel - and remained depressed for the third consecutive session on Friday.
Given the recent downfall, the mentioned channel constituted towards the formation of a bearish continuation – flag chart pattern – and point to persistent selling pressure, supporting prospects for a further near-term depreciating move.
With technical indicators on hourly/daily charts holding in the negative territory, sustained weakness below weekly lows – around the 1.2155 region – will reinforce the bearish outlook and set the stage for a slide back towards the 1.2100 handle.
A follow-through selling now seems to pave the way for a move towards challenging the key 1.20 psychological mark amid persistent Brexit-related uncertainties, with some intermediate support near mid-1.2000s.
On the upside, immediate resistance is pegged near the 1.2200-1.2210 region, which if cleared decisively might prompt some short-covering move and set the stage for a move towards reclaiming the 1.2300 round figure mark.
GBP/USD 4-hourly chart
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Author
Haresh Menghani
FXStreet
Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.
