GBP/USD technical analysis: Consolidates near 23.6% Fibo. of the latest leg of a steep decline

• The GBP/USD pair now seems to have entered a bearish consolidation phase and was seen oscillating in 20-pips narrow trading band, between the 1.2165-85 area.
• The mentioned region coincides with 23.6% Fibo. level of the pair’s steep decline over the past 36-hours or so and should act as a key pivotal point for intraday traders.

Meanwhile, any subsequent recovery beyond the 1.2200 round figure mark now seems to confront some fresh supply near 38.2% Fibo. level – around the 1.2215-20 region, ahead of 50% Fibo. level near mid-1.2200s.

Given the overnight bearish break below a five-month-old descending trend-channel, the attempted recovery might still be seen as a selling opportunity, albeit a move beyond the mentioned resistance might negate the near-term bearish bias.

A sustained strength beyond mid-1.2200s now seems to trigger some aggressive short-covering move and lift the pair further beyond the 1.2300 round figure mark towards testing its next major supply zone near the 1.2330-40 region.

On the flip side, the 1.2110 region (March 2017 swing lows) remains a key support, which if broken might prompt fresh technical selling and turn the pair vulnerable to extend the downfall further towards challenging the key 1.20 psychological mark.

GBP/USD 1-hourly chart