- Having failed to sustain at higher levels on Friday, the GBP/USD pair met with some fresh supply at the start of a new trading week.
- The bearish slide accelerated further following the disappointing release of UK manufacturing PMI, dragging the pair below mid-1.2600s.
A sustained intraday weakness below 200-hour SMA was seen as a key trigger for bearish traders and aggravated the selling pressure. Meanwhile, the appearance of a death cross (50-period SMA falling below 200-period SMA) on the 1-hourly chart sets the stage for a further intraday downfall.
Meanwhile, technical indicators on 4-hourly/daily charts have again started gaining negative momentum and add credence to the bearish outlook, which will be confirmed on a sustained break through 50% Fibo. level of the 1.2506-1.2784 recent recovery move.
Below the mentioned support, the pair is likely to turn vulnerable and aim towards challenging the 1.2600 handle en-route the 1.2570 horizontal support, while any attempted bounce might now confront some fresh supply near 38.2% Fibo. level – around the 1.2675-80 region.
GBP/USD 1-hourly chart
-636975737808495156.png)
Share
