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The cable is trading at its lowest level since Christmas. Yohay Elam, an analyst at FXStreet, predicts more falls for the pair before a chance for a bounce. 

Key quotes

“The Relative Strength Index on the four-hour chart is still above 30 – outside oversold conditions and allowing for further falls. Moreover, the currency pair is still above the round 1.29 level which was low in late December.”

“Momentum remains to the downside and GBP/USD is trading below the 50, 100, and 200 Simple Moving Averages.”

“Below 1.29, the next cushion is at 1.2875, which was a low point in early December.”