- GBP/USD extended the overnight retracement slide from the 1.3500 neighbourhood.
- The intraday slide, so far, has managed to find decent support near 100-hour SMA.
- The set-up supports prospects for the emergence of some dip-buying at lower levels.
The GBP/USD pair maintained its offered tone near mid-1.3300s and had a rather muted reaction to the release of the US ADP report. The pair, so far, has managed to hold above 100-hour SMA, which should now act as a key pivotal point for intraday traders.
Given the overnight sharp pullback from the vicinity of the key 1.3500 psychological mark, or YTD tops, a convincing breakthrough the mentioned support should pave the way for additional weakness. The pair might then accelerate the slide further towards the 1.3285-80 region.
The latter marks a previous strong horizontal resistance now turned support and should help limit any further near-term downfall. That said, some follow-through selling should pave the way for an extension of the corrective slide towards the 1.3200 mark.
Meanwhile, technical indicators on the daily chart have eased from the overbought zone and maintained their bullish bias on the 4-hourly chart. This, in turn, supports prospects for the emergence of some dip-buying, which should help limit any deeper losses.
On the flip side, the 1.3400 round-figure mark now seems to act as immediate strong resistance. A sustained strength beyond has the potential to lift the pair back above mid-1.3400s and assist bulls to make a fresh attempt to reclaim the 1.3500 mark.
GBP/USD 1-hourly chart
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Technical levels to watch
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