GBP/USD Technical Analysis: Flirting with daily lows, just above mid-1.2800s

• GBP/USD meets with some fresh supply near 100/200-hour SMA confluence region.
• The 1.2900 handle now seems to act as a key pivotal point for short-term traders.

The GBP/USD pair failed to capitalize on the previous session’s goodish intraday positive move to levels just above the 1.2900 round-figure mark and met with some fresh supply on Tuesday.

The mentioned handle marks an important confluence region, comprising of 100 and 200-hour SMAs, which should now act as a key pivotal point for the pair’s next leg of a directional move.

Currently hovering around the lower end of its daily trading range, just above mid-1.2800s, the pair seems more likely to slide back towards Friday’s swing lows, around the 1.2825-20 region.

Given that the pair has been drifting lower along a short-term descending trend-channel, some follow-through selling might turn the pair vulnerable to break below the 1.2800 handle.

The downfall could further get extended towards challenging the trend-channel support, currently near the 1.2745 region, which if broken might be seen as a key trigger for bearish traders.

On the flip side, the 1.2900 confluence region might continue to act as immediate resistance and any subsequent move up is likely to remain capped near 1.2940-50 region (channel resistance).

GBP/USD 1-hourly chart