GBP/USD Technical Analysis: Bears might aim towards challenging 1.2800 handle

Disappointing UK PMI prints for November drags the pair below the 1.2900 handle.
The near-term technical set-up seems to have shifted in favour of bearish traders.

Haresh Menghani FXStreet

The GBP/USD pair held on to its weaker tone through the mid-European session on Friday, albeit has managed to rebound around 20 pips from weekly lows and is currently hovering around the 1.2880-85 region.

A sustained break below the 1.2900 round-figure mark, coinciding with 200-hour SMA, was seen as a key trigger for bearish traders following the release of weaker-than-expected flash UK PMI prints for November.

Against the backdrop of the pair’s repeated failure ahead of the key 1.30 psychological mark, acceptance below the mentioned handle now support prospects for a further near-term depreciating move.

Hence, some follow-through weakness, back towards challenging the 1.2800 handle, now looks a distinct possibility, albeit slightly oversold conditions on the hourly chart warrant some caution for bearish traders.

On the flip side, any attempted recovery beyond the 1.2900 support breakpoint might now confront some fresh supply near the 1.2925-30 region, above which the pair is likely to aim back towards the 1.30 handle.

GBP/USD 1-hourly chart

GBP/USD

Overview
Today last price	1.2879
Today Daily Change	-0.0029
Today Daily Change %	-0.22
Today daily open	1.2908

Trends
Daily SMA20	1.288
Daily SMA50	1.2669
Daily SMA100	1.2474
Daily SMA200	1.2704

Levels
Previous Daily High	1.297
Previous Daily Low	1.2893
Previous Weekly High	1.2918
Previous Weekly Low	1.2785
Previous Monthly High	1.3013
Previous Monthly Low	1.2194
Daily Fibonacci 38.2%	1.2922
Daily Fibonacci 61.8%	1.2941
Daily Pivot Point S1	1.2877
Daily Pivot Point S2	1.2846
Daily Pivot Point S3	1.2799
Daily Pivot Point R1	1.2954
Daily Pivot Point R2	1.3001
Daily Pivot Point R3	1.3032

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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