- The GBP/USD pair lacked any firm directional bias on Thursday and seesawed between tepid gains/minor losses through the early European session.
- Given that the pair failed to capitalize on the overnight sharp short-covering bounce, the price action now suggests persistent selling bias at higher levels.
However, the fact that bulls are showing some resilience below the 100-hour & 200-hour SMA confluence region warrants some caution before placing any aggressive bearish bets ahead of the new UK PM Boris Johnson’s first statement in the House of Common.
Meanwhile, technical indicators on the daily chart maintained their bearish bias and have been losing positive momentum on hourly charts, supporting prospects for some renewed selling and the resumption of the prior/well-established downward trajectory.
Immediate support is now pegged near the 1.2435 horizontal zone, which if broken will reinforce the bearish outlook and set the stage for a move towards challenging the 1.2400 handle before the pair eventually turns vulnerable to break below yearly lows – set last week.
On the flip side, the key 1.2500 psychological mark is likely to act as immediate resistance and is closely followed by the overnight swing higher – around the 1.2520 region, above which the pair might head back towards testing the 1.2555-60 supply zone.
GBP/USD 1-hourly chart
-636996403854803702.png)
Share
