• The pair has been trending lower along a short-term descending trend-channel over the past 1-1/2 week or so and now seems to have found acceptance below 1.2900 handle (trend-channel support)
• Given the recent bearish break through the very important 200-day SMA and descending triangle support, the set-up now points to an extension of the near-term well established bearish trajectory.
• Meanwhile, technical indicators on hourly charts are already pointing to slightly oversold conditions and might turn out to be the only factor that might help limit any sharp intraday downfall.
• Hence, it would be prudent to wait for a near-term consolidation/modest bounce before traders again start positioning aggressively for a further slide towards testing sub-1.2800 level.
GBP/USD 1-hourly chart