GBP/USD Technical Analysis: Retreats farther from 19-month tops, slips below 1.3400 handle
- Weakness below 23.6% Fibo. level might have prompted some technical selling.
- Dip-buying should help limit losses amid lower possibilities of a no-deal Brexit.
The GBP/USD pair extended its steady intraday pullback from 19-month tops, levels just above the key 1.3500 psychological mark, and slipped below the 1.3400 handle during the early European session on Friday.
Weakness below the mentioned handle, which coincided with 23.6% Fibonacci level of the latest upsurge from the overnight swing lows, was seen as a key trigger behind the latest leg of a downtick over the past hour or so.
The fact that the market might have fully priced in the optimism over a Tory victory, extremely overbought conditions on hourly charts turned out to be one of the key factors that prompted some intraday long-unwinding trade.
Hence, some follow-through slide, possibly towards 38.2% Fibo. level support near the 1.3335 region, now looks a distinct possibility. However, the dip might still be seen as a buying opportunity amid diminishing odds of a no-deal Brexit.
Meanwhile, on the upside, the 1.3400 round-figure mark now seems to act as an immediate resistance, above which the pair is likely to make a fresh attempt towards conquering the 1.3500 handle.
GBP/USD 15-mins. chart
Author
Haresh Menghani
FXStreet
Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.
