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.

EUR/USD climbs to daily highs near 1.1820

EUR/USD now picks up pace and advances to the area of daily peaks north of the 1.1800 barrier at the end of the week. The pair’s decent move higher comes against the backdrop of a generalised lack of direction in the FX galaxy and the mild offered stance in the US Dollar.

GBP/USD trims losses, retests 1.3460

After briefly challenging its key 200-day SMA near 1.3440, GBP/USD now manages to regain some balance and revisit the 1.3460 zone on Friday. Cable’s pullback comes as the selling pressure on the Greenback gathers traction, reigniting some recovery in the risk-linked space.

Gold flirts with four-week highs past $5,200

Gold extends its rebound, climbing for a third consecutive session and pushing back above the $5,200 mark per troy ounce on Friday. The move higher continues to draw support from lingering geopolitical tensions and the ongoing uncertainty surrounding US trade policy, both of which are keeping safe-haven demand firmly in play.

Bitcoin, Ethereum and Ripple consolidate with short-term cautious bullish bias

Bitcoin, Ethereum and Ripple are consolidating near key technical areas on Friday, showing mild signs of stabilization after recent volatility. BTC holds above $67,000 despite mild losses so far this week, while ETH hovers around $2,000 after a rejection near its upper consolidation boundary.

Changing the game: International implications of recent tariff developments

The Supreme Court ruling on International Emergency Economic Powers Act (IEEPA) tariffs provides limited relief for the rest of the world, with weighted average tariff rates modestly lower.

Starknet unveils strkBTC, shielded Bitcoin transactions on Ethereum Layer 2

Starknet, the Ethereum Layer 2 network developed by StarkWare, today announced strkBTC, a wrapped Bitcoin asset that introduces optional shielding while preserving full DeFi composability.