• 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|
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