GBP/USD Technical Analysis: Sustained weakness below 1.30 mark to confirm a bearish breakdown

Haresh Menghani FXStreet

• Over the past three months or so, the pair has been oscillating between two converging trend-line and is currently placed near the lower ascending trend-line support.

• Against the backdrop of the recent decline since mid-April, the trend-lines constituted towards the formation of a bearish continuation - pennant pattern on the daily chart.

• Adding to this, yesterday's break and a subsequent acceptance below 100-day SMA adds credence to the bearish formation, increasing prospects for a further near-term downfall.

• A sustained weakness below the key 1.30 psychological mark will confirm a near-term bearish breakdown and pave the way for the resumption of the prior/well-established trend.

GBP/USD daily chart

GBP/USD

Overview:
    Last Price: 1.303
    Daily change: 12 pips
    Daily change: 0.0922%
    Daily Open: 1.3018
Trends:
    Daily SMA20: 1.3102
    Daily SMA50: 1.2999
    Daily SMA100: 1.3094
    Daily SMA200: 1.3482
Levels:
    Daily High: 1.3132
    Daily Low: 1.3016
    Weekly High: 1.326
    Weekly Low: 1.3028
    Monthly High: 1.33
    Monthly Low: 1.2786
    Daily Fibonacci 38.2%: 1.3061
    Daily Fibonacci 61.8%: 1.3088
    Daily Pivot Point S1: 1.2978
    Daily Pivot Point S2: 1.2939
    Daily Pivot Point S3: 1.2862
    Daily Pivot Point R1: 1.3095
    Daily Pivot Point R2: 1.3172
    Daily Pivot Point R3: 1.3211

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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