GBP/USD technical analysis: Set-up points to a possible drop towards 1.2900 handle

Haresh Menghani FXStreet

• The pair extended its recent pullback from a resistance marked by 61.8% Fibonacci retracement level of the 1.3381-1.2866 downfall and dropped to two-week lows on Tuesday.

• Given the overnight break below 23.6% Fibo. level and the fact that bulls struggled to defend the very important 200-day SMA support prospects for a further near-term downside.

Meanwhile, technical indicators on daily/hourly charts have again started gaining negative momentum and are still far from being in the oversold territory further reinforce the near-term negative outlook.

Hence, any attempted bounce towards the key 1.30 psychological mark might still be seen as an opportunity to initiate fresh bearish positions for an eventual slide towards testing the 1.2900 handle.

Having said that, a sustained move beyond the 1.3030-40 supply zone might negate the bearish bias, rather prompt some short-covering move and lift the pair further towards the 1.3100 round figure mark.

GBP/USD daily chart

GBP/USD

Overview
Today last price	1.2957
Today Daily Change	-0.0001
Today Daily Change %	-0.01
Today daily open	1.2958

Trends
Daily SMA20	1.3003
Daily SMA50	1.3085
Daily SMA100	1.3011
Daily SMA200	1.2959

Levels
Previous Daily High	1.3042
Previous Daily Low	1.2941
Previous Weekly High	1.3171
Previous Weekly Low	1.2967
Previous Monthly High	1.3196
Previous Monthly Low	1.2865
Daily Fibonacci 38.2%	1.298
Daily Fibonacci 61.8%	1.3003
Daily Pivot Point S1	1.2919
Daily Pivot Point S2	1.2879
Daily Pivot Point S3	1.2818
Daily Pivot Point R1	1.302
Daily Pivot Point R2	1.3081
Daily Pivot Point R3	1.3121

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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