“¢ The GBP/USD pair continued with its struggle to make it through the 1.2745-50 supply zone and now seems to have formed a bearish double-top chart pattern on the 1-hourly chart.
“¢ Meanwhile, the downside remained cushioned amid a subdued USD demand and continues to find some support near a short-term ascending trend-line ahead of the US jobs report.
The mentioned support coincides with 100-hour SMA and should now act as a key pivotal point for the pair’s next leg of a directional move. Meanwhile, technical indicators on hourly charts have been gaining positive traction but maintained their bearish bias on the daily chart, warranting caution before placing any aggressive bets.
Hence, it would be prudent to wait for a convincing break through the immediate support near the 1.2685-80 region, for a bearish confirmation, or a sustained move beyond mid-1.2700s to increase prospects for any further near-term appreciating move.
A bearish break would set the stage for a sharp downfall back below the 1.2600 handle before the pair eventually drops to retest last week’s swing low support near the 1.2560 region. Alternatively, a bullish breakout might trigger a short-covering move towards the 1.2800 mark, if cleared should pave the way for an additional recovery towards the 1.2860-65 region.
GBP/USD 1-hourly chart
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