GBP/USD Price Analysis: Headed back towards weekly lows, around 1.2335 level

• GBP/USD confirms an intraday bearish break through the daily consolidative trading range.
• The set-up supports prospects for a move to retest weekly lows, around the 1.2335 region.
• Subsequent weakness might now turn the pair vulnerable to break below the 1.2300 mark.

The GBP/USD pair edged lower through the early North American session and refreshed daily lows, around the 1.2375 region in the last hour.

The pair came under some fresh selling pressure on the last trading day of the week and extended this week’s retracement slide from the 1.2540-50 resistance zone. This comes on the back of a brief consolidation below the 50% Fibonacci level of the 102076-1.2813 positive move and confirms an intraday bearish break.

Meanwhile, technical indicators on hourly charts have been gaining negative traction and are still far from being in the oversold territory. This coupled with the fact that oscillators on the daily chart have just started drifting into the bearish territory reinforce the negative outlook and point to additional weakness.

Hence, a subsequent slide back towards retesting weekly lows, around the 1.2335 region, now looks a distinct possibility. The latter coincides with 61.8% Fibo. level, which if broken might turn the pair vulnerable to break below the 1.2300 mark and resume its bearish trend witnessed over the past two weeks or so.

On the flip side, On the flip side, the 1.2400 round-figure mark now seems to act as immediate resistance. Above the mentioned level, the pair might move back to the overnight swing high, around the 1.2460-65 area. Some follow-through buying might assist the pair to aim to reclaim the key 1.2500 psychological mark.

GBP/USD 4-hourly chart

Technical levels to watch