“¢ The pair remained under some selling pressure for the fourth consecutive session on Thursday and added to this week’s considerable losses.
“¢ The pair fell below the key 1.30 psychological mark, or 1-1/2 week lows, and erased a major part of last week’s strong up-move to one-month tops.
The downward momentum, which started from a resistance marked by 61.8% Fibonacci retracement level of the 1.3381-1.2866, remained uninterrupted after Labour party leader – Jeremy Corbyn poured cold water over the UK cross-party Brexit talks.
The pair now seems to have found acceptance below the 1.30 handle, coinciding with 23.6% Fibonacci retracement level, and hence, a follow-through weakness, towards testing the very important 200-day SMA, now looks a distinct possibility.
Technical indicators on hourly/daily charts maintained their bearish bias and are still far from being in the oversold territory, reinforcing the bearish outlook for a possible slide towards retesting a descending trend-line resistance break-point now turned support.
GBP/USD daily chart
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