GBP/USD technical analysis: Oversold conditions helped bounce off 1.2600 handle, still seems vulnerable


   •  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

GBP/USD

Overview
Today last price 1.2641
Today Daily Change -0.0020
Today Daily Change % -0.16
Today daily open 1.2661
 
Trends
Daily SMA20 1.2927
Daily SMA50 1.3032
Daily SMA100 1.3017
Daily SMA200 1.2957
Levels
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

 

 

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