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

Haresh Menghani FXStreet

• 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

GBP/USD

Overview
Today last price	1.2666
Today Daily Change	-0.0040
Today Daily Change %	-0.31
Today daily open	1.2706

Trends
Daily SMA20	1.2939
Daily SMA50	1.3046
Daily SMA100	1.3016
Daily SMA200	1.2958

Levels
Previous Daily High	1.2815
Previous Daily Low	1.2685
Previous Weekly High	1.3042
Previous Weekly Low	1.2711
Previous Monthly High	1.3196
Previous Monthly Low	1.2865
Daily Fibonacci 38.2%	1.2735
Daily Fibonacci 61.8%	1.2765
Daily Pivot Point S1	1.2656
Daily Pivot Point S2	1.2605
Daily Pivot Point S3	1.2526
Daily Pivot Point R1	1.2786
Daily Pivot Point R2	1.2865
Daily Pivot Point R3	1.2916

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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