Search ForexCrunch

   “¢   The pair extended overnight rejection slide from the vicinity of 100-day SMA and today’s downfall took it further below the 50-day SMA.  

   “¢   The downward trajectory now seems to have stalled near a short-term ascending trend-line support, extending from YTD lows set in mid-August through September monthly lows.

   “¢   Former UK Foreign Minister Boris Johnson called on his supporters to back PM Theresa May in delivering a correct Brexit and helped ease the bearish pressure surrounding the British Pound.

   “¢   Meanwhile, technical indicators on the daily chart have started losing positive momentum and the corrective bounce failed to lift the pair back above important support break-points.

   “¢   The set-up now points to increased selling pressure and a convincing break through the mentioned trend-line support would further reinforce the near-term negative outlook.

GBP/USD daily chart

Spot Rate: 1.2971
Daily High: 1.3042
Daily Low: 1.2941
Trend: Bearish below trend-line support

R1: 1.3000 (psychological mark)
R2: 1.3028 (horizontal zone)
R3: 1.3042 (current day swing high)

S1: 1.2941 (3-week low set earlier today)
S2: 1.2925 (horizontal zone)
S3: 1.2900 (round figure mark)