- The GBP/USD pair edged lower through the early European session on Wednesday, albeit now seemed to show some resilience near 100-hour SMA.
- This is closely followed by a support marked by the lower end of an ascending trend-channel formation on the 1-hourly charts – near the 1.2125 region.
Given the pair’s recent slump of over 400-pips from levels beyond the key 1.2500 psychological mark – touched on July 25, the mentioned trend-channel constituted towards the formation of a bearish continuation – flag chart pattern.
Moreover, the pair’s inability to capitalize on the overnight attempted bounce beyond the 1.2200 handle suggests that the near-term selling pressure might still be far from being over and support prospects for an eventual bearish breakdown.
Sustained weakness below the said support levels, leading to a subsequent slide below the 1.2100 round figure mark will set the stage for the resumption of the pair’s well-established bearish trend and accelerate the slide further towards the 1.2000 handle.
Meanwhile, technical indicators on hourly charts have again started gaining negative momentum and also recovered from the oversold territory on the daily chart, which further adds credence to the near-term bearish set-up amid persistent Brexit-related uncertainties.
GBP/USD 1-hourly chart
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