• The GBP/USD pair managed to find decent support near the 1.2600 handle and recovered a major part of its early slide to fresh 4-1/2 month lows.
• In absence of any fresh fundamental catalyst, the intraday rebound could be solely attributed some short-covering amid highly oversold conditions.
Given this week's bearish break through the 1.2700-1.2680 horizontal support, the rebound runs the risk of fizzling out rather quickly and might still be seen as a selling opportunity near the mentioned support break-point.
Moreover, the fact that the pair remains well below its important moving averages - 50, 100 & 200-day SMA further add credence to the near-term bearish outlook amid the ongoing Brexit-related UK political chaos.
Meanwhile, the 50-day SMA is now looking to cross below the very important 200-day SMA, forming a death cross and indicating the potential for a major selloff back towards challenging the key 1.2500 psychological mark.
The bearish trajectory could further get extended towards yearly lows support around the 1.2400-1.2395 region - or near 21-month lows set in January, en-route the next static support near the 1.2370-65 region.
GBP/USD daily chart
|Today last price||1.2641|
|Today Daily Change||-0.0020|
|Today Daily Change %||-0.16|
|Today daily open||1.2661|
|Previous Daily High||1.2721|
|Previous Daily Low||1.2624|
|Previous Weekly High||1.3042|
|Previous Weekly Low||1.2711|
|Previous Monthly High||1.3196|
|Previous Monthly Low||1.2865|
|Daily Fibonacci 38.2%||1.2661|
|Daily Fibonacci 61.8%||1.2684|
|Daily Pivot Point S1||1.2616|
|Daily Pivot Point S2||1.2572|
|Daily Pivot Point S3||1.2519|
|Daily Pivot Point R1||1.2713|
|Daily Pivot Point R2||1.2766|
|Daily Pivot Point R3||1.281|
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.