GBP/USD technical analysis: Hammered down to 4-1/2 lows, vulnerable to test 1.2600 mark

   •  The selling pressure around the British Pound picked up the pace during the early European session on Wednesday and dragged the GBP/USD pair to over four-month lows in the last hour.

   •  Despite May's new Brexit deal, the growing market conviction that she won't gather the needed votes to succeed continued denting the already weaker sentiment and kept exerting pressure.

The bearish slide has now dragged the pair below mid-Jan. swing lows support near the 1.2670-65 region and despite near-term oversold conditions, the downward trajectory could further get extended towards challenging the 1.2600 round figure mark.

Alternatively, any recovery back above the 1.2700 handle might trigger some short-covering bounce but might still be seen as a selling opportunity near the 1.2770 region – marking 61.8% Fibonacci retracement level of the 1.2396-1.3381 up-move.

GBP/USD daily chart