- GBP/USD comes under some intense selling pressure on Tuesday.
- Acceptance below 200-hour SMA support prospects for further slide.
The GBP/USD pair remained under some heavy selling pressure through the early European session on Tuesday and failed to gain any respite from the mixed release of the latest UK employment details for November.
The pair tumbled below the 1.3200 handle, reversing Friday’s massive rally to over 1-1/2-year tops, but now seems to have found some support near the 50% Fibonacci level of the 1.2823-1.3515 positive move.
Technical indicators on the 1-hourly chart are already flashing oversold conditions and held investors from placing any fresh bearish bets, which eventually helped limit the downside, at least for the time being.
Meanwhile, bearish acceptance below 200-hour SMA, coupled with the fact that oscillators on the 4-hourly chart have started gaining negative traction support prospects for an extension of the corrective slide.
Some follow-through selling below the mentioned support, around mid-1.3100s, will reinforce the bearish outlook and set the stage for a slide towards challenging the 1.3100 handle – nearing 61.8% Fibo. level.
On the flip side, any meaningful recovery attempt might now confront some fresh supply near mid-1.3200s (38.2% Fibo. level), above which the pair is likely to aim towards reclaiming the 1.3300 round-figure mark.
GBP/USD 1-hourly chart
Share
