GBPUSD Price Analysis: Hammered down to fresh 5-month lows, below 1.2600 mark

GBPUSD Price Analysis: Hammered down to fresh 5-month lows, below 1.2600 mark

  • GBP/USD witnessed some aggressive selling on Thursday and broke through important support levels.
  • Extremely oversold conditions on hourly charts warrant some caution before placing fresh bearish bets.

The GBP/USD pair extended its sharp intraday decline and tumbled to fresh five-month lows, with bears now looking to extend the slide further below the 1.2600 round-figure mark.

Given the overnight rejection from a short-term descending trend-channel resistance, a subsequent break below the 1.2800 mark was seen as a key trigger for bearish traders.

The selling pressure aggravated further following a break below the lower end of the mentioned trend-channel, around the 1.2700 mark, amid a strong pickup in the USD demand.

Meanwhile, technical indicators on hourly charts are already flashing extremely oversold conditions and warrant some caution before positioning for any further depreciating move.

Hence, it will be prudent to wait for some near-term consolidation or a possible bounce back towards the 1.2660 region, which might still be utilized as a selling opportunity.

GBP/USD 1-hourly chart

Technical levels to watch

GBP/USD

Overview
Today last price 1.2652
Today Daily Change -0.0168
Today Daily Change % -1.31
Today daily open 1.282

 

Trends
Daily SMA20 1.2935
Daily SMA50 1.3
Daily SMA100 1.2993
Daily SMA200 1.2711

 

Levels
Previous Daily High 1.2976
Previous Daily Low 1.2805
Previous Weekly High 1.3049
Previous Weekly Low 1.2741
Previous Monthly High 1.3204
Previous Monthly Low 1.2726
Daily Fibonacci 38.2% 1.2871
Daily Fibonacci 61.8% 1.2911
Daily Pivot Point S1 1.2758
Daily Pivot Point S2 1.2696
Daily Pivot Point S3 1.2587
Daily Pivot Point R1 1.293
Daily Pivot Point R2 1.3039
Daily Pivot Point R3 1.3101

 

 

 


Source: FxStreet

 

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