GBP/USD Technical Analysis: Flirting with a descending trend-channel support, 6-week lows ahead of May's speech

Haresh Menghani FXStreet

• The pair kept losing ground through the mid-European session and is currently placed near the lower end of a short-term descending trend-channel, held over the past one-week or so.

• The fact that the pair remains well below important intraday moving averages - 50, 100 & 200-hour SMA, points to an extension of the ongoing bearish trajectory.

• However, oversold technical indicators on the 1-hourly chart warrant some cautiousness ahead of the UK PM Theresa May's address in parliament later today.

• Meanwhile, a sustained weakness below the trend-channel support will confirm a near-term bearish breakdown and open room for a further near-term depreciating move.

GBP/USD 1-hourly chart

GBP/USD

Overview:
    Last Price: 1.2911
    Daily change: -72 pips
    Daily change: -0.555%
    Daily Open: 1.2983
Trends:
    Daily SMA20: 1.3084
    Daily SMA50: 1.3014
    Daily SMA100: 1.3084
    Daily SMA200: 1.3473
Levels:
    Daily High: 1.3046
    Daily Low: 1.2937
    Weekly High: 1.3238
    Weekly Low: 1.3011
    Monthly High: 1.33
    Monthly Low: 1.2786
    Daily Fibonacci 38.2%: 1.3004
    Daily Fibonacci 61.8%: 1.2979
    Daily Pivot Point S1: 1.2932
    Daily Pivot Point S2: 1.288
    Daily Pivot Point S3: 1.2823
    Daily Pivot Point R1: 1.304
    Daily Pivot Point R2: 1.3097
    Daily Pivot Point R3: 1.3148

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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