GBP/USD Technical Analysis: Drops to fresh weekly lows, below 1.2900 handle

• The GBP/USD pair extended its recent pullback from the 1.30 neighbourhood.
• Sustained weakness below 100-hour SMA was seen as a key trigger for bears.

The GBP/USD pair extended this week’s pullback from the vicinity of the key 1.30 psychological mark and remained under some selling pressure for the second consecutive session on Wednesday.
 
The pair finally broke down of its late-Asian session consolidative trading range and dropped to fresh weekly lows in the last hour, with bulls failing to defend the 1.2900 round-figure mark.
 
A sustained break below 100-hour SMA was seen as a key trigger for bearish traders and dragged the pair further below 38.2% Fibonacci level of the 1.2769-1.2986 last week’s positive move.
 
Meanwhile, oscillators on hourly charts have been drifting lower but held in the bullish territory on the daily chart and warrant some caution before placing any aggressive directional bets.
 
Hence, any subsequent slide is likely to find some support near the 1.2875 region (50% Fibo.), which if broken will set the stage for a sharp drop towards mid-1.2800s (61.8% Fibo.).
 
On the flip side, any attempted bounce might confront some supply near the 100-hour SMA, currently near the 1.2910 region, and should remain capped near the 1.2930-35 region (23.6% Fibo.).

GBP/USD 1-hourly chart