GBP/USD once again failed near the 1.2665-70 supply zone, ahead of the 200-day SMA, and is seen trading now below the 1.26 level, down -0.2% on a day. FXStreet’s Haresh Menghani outlines the cable could extend its decline if breaks below the 1.2565 mark.
Key quotes
“Bulls are likely to wait for a sustained move beyond the 1.2665-70 region before positioning for any further appreciating move. The cable might then aim to challenge the very important 200-day SMA, around the 1.2700 mark, which coincides with the 61.8% Fibonacci level of the 1.3515-1.1412 downfall. A convincing breakthrough the mentioned confluence hurdle will be seen as a fresh trigger for bullish traders and pave the way for an extension of the recent positive momentum.”
“On the flip side, any subsequent pullback is likely to find some support near the previous day’s swing low, around the 1.2565 area. Failure to defend the mentioned support might turn the pair vulnerable to accelerate the fall back towards the key 1.2500 psychological mark. Some follow-through selling could accelerate the slide further towards the next major support near mid-1.2400s.”
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