- GBP/USD meets with some fresh supply on the first day of a new week.
- The technical set-up support prospects for a near-term bearish break.
The GBP/USD pair failed to capitalize on Friday’s positive move and met with some fresh supply on the first day of a new trading week.
The attempted intraday bounce faltered near the key 1.2500 psychological mark, which is followed by 100-hour near the 1.2510-15 region.
The mentioned barrier coincides with the top end of a three-day-old trading range and should act as a key pivotal point for short-term traders.
The range-bound trading action was reinforced by neutral oscillators on the daily charts, which have been struggling to gain any meaningful traction.
Meanwhile, bearish technical indicators on hourly charts support prospects for an eventual bearish breakdown and a further near-term depreciating move.
However, it will be prudent to wait for a sustained weakness below the 1.2400 mark before positioning for a slide towards the 1.2370-65 intermediate support zone.
Some follow-through selling will reinforce the negative outlook and accelerate the fall towards the 1.2300 mark en-route the next major support near mid-1.2200s.
On the flip side, bulls are likely to wait for a sustained move beyond the 1.2510-20 region, above which the pair is likely to aim towards reclaiming the 1.2600 mark.
The momentum could further get extended and assist the pair to make a fresh attempt towards challenging the very important 200-DMA, around mid-1.2600s.
GBP/USD 1-hourly chart
-637229823301709476.png)
Technical levels to watch
Share
