GBP/USD Technical Analysis: Bulls trying to defend descending channel support, around mid-1.2900s

GBP/USD remains under some selling pressure on the first day of a new week.
Slightly oversold conditions on hourly charts might help limit any further losses.

Haresh Menghani FXStreet

The GBP/USD pair extended its recent rejection slide from the vicinity of the 1.3200 handle and witnessed some follow-through selling for the fifth consecutive session on Monday.

The downward trajectory – marking the seventh day of a negative move in the previous eight – dragged the pair farther below the key 1.30 psychological mark, or over two-week lows.

Over the past two weeks or so the pair has been drifting lower along a descending trend-channel formation on short-term charts that clearly points to a well established bearish trend.

Meanwhile, technical indicators on the daily chart have just started gaining negative momentum and further reinforce the bearish outlook amid markets concerns about a no-deal Brexit.

However, slightly oversold conditions on hourly charts seemed to be the only factor holding investors from placing any aggressive bearish bets and help defend the trend-channel support.

Hence, it will be prudent to wait for some strong follow-through selling below the mentioned support, currently near mid-1.2900s before positioning for any further depreciating move.

GBP/USD 4-hourly chart

GBP/USD

Overview
Today last price	1.2976
Today Daily Change	-0.0080
Today Daily Change %	-0.61
Today daily open	1.3056

Trends
Daily SMA20	1.3091
Daily SMA50	1.3017
Daily SMA100	1.2755
Daily SMA200	1.2692

Levels
Previous Daily High	1.3098
Previous Daily Low	1.3042
Previous Weekly High	1.3213
Previous Weekly Low	1.3013
Previous Monthly High	1.3515
Previous Monthly Low	1.2896
Daily Fibonacci 38.2%	1.3064
Daily Fibonacci 61.8%	1.3077
Daily Pivot Point S1	1.3033
Daily Pivot Point S2	1.301
Daily Pivot Point S3	1.2978
Daily Pivot Point R1	1.3088
Daily Pivot Point R2	1.3121
Daily Pivot Point R3	1.3144

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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