- GBP/USD failed to capitalize on the attempted intraday positive move.
- A break below 1.2400 mark now paves the way for additional weakness.
The GBP/USD pair struggled to preserve intraday gains and dropped to fresh session lows in the last hour, with bears now looking to extend the fall further below the 1.2400 round-figure mark.
The pair on Wednesday witnessed a sharp pullback from the 1.2540-50 resistance zone and dropped below the 50% Fibonacci level of the 102076-1.2813 move up. This followed by the pair’s inability to capitalize on the attempted positive move points to the emergence of some fresh selling.
Meanwhile, technical indicators on the daily chart maintained their bearish bias and have again started drifting into the negative territory on hourly charts. This, in turn, support prospects for the resumption of the recent bearish trend witnessed over the past two weeks or so.
A convincing break below the 1.2400 mark will reinforce the bearish outlook and accelerate the fall back towards retesting weekly lows, around the 1.2335 region. Some follow-through selling might turn the pair vulnerable to break below the 1.2300 mark and pave the way for further weakness.
On the flip side, the 1.2440 region (50% Fibo.) now becomes immediate strong resistance. A sustained strength beyond might lift the pair towards the key 1.2500 psychological mark. Any subsequent move might continue to confront stiff resistance near the 1.2540-50 region (38.2% Fibo.).
GBP/USD 4-hourly chart
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Technical levels to watch
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