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Last week’s downfall below the very important 200-day SMA might have already confirmed a near-term bearish bias on the GBP/USD pair, according to Haresh Menghani, an analyst at FXStreet.

Key quotes

“Slightly oversold conditions on the cable’s short-term charts might hold investors from placing any aggressive bearish bets and help limit deeper losses, at least for the time being.” 

“It will be prudent to wait for some near-term consolidation or even a possible bounce before traders again start positioning for any further near-term depreciating move.”

“The 1.2300 round-figure mark now seems to act as immediate support and is followed by Friday’s swing lows, around the 1.2260 region.” 

“On the flip side, the 1.2400 mark, closely followed by daily tops, around the 1.2420 region might keep a lid on any attempted recovery.”

 

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