- GBP/USD witnessed some selling on Wednesday, albeit lacked any strong follow-through.
- Mixed technical indicators on hourly/daily charts warrant some caution for bearish traders.
The GBP/USD pair maintained its offered tone through the early North American session, albeit has still managed to hold its neck above the 200-hour SMA.
Meanwhile, this week’s goodish recovery move from the very important 200-day SMA stalled near a resistance marked by the top end of a three-week-old descending trend-channel. However, the lack of any strong follow-through selling warrants some caution for aggressive bearish traders.
Technical indicators on the daily chart maintained their negative bias, albeit are yet to confirm the bearish outlook on hourly charts. Hence, it will be prudent to wait for a sustained break below the 1.2800 mark (200-hour SMA) before positioning for the resumption of the recent bearish trend.
The GBP/USD pair migh then turn vulnerable and accelerate the fall further towards testing the 1.2735-30 intermediate support. The downward momentum has the potential to drag the pair back towards the 1.2700 mark en-route multi-weekly lows support near the 1.2675 region.
On the flip side, the 1.2900 mark now seems to have emerged as immediate strong support and is closely followed by the top end of the trend-channel, around the 1.2925-30 region. A convincing breakthrough will set the stage for a move towards conquering the key 1.3000 psychological mark.
GBP/USD 1-hourly chart
Technical levels to watch
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