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GBP/USD Technical Analysis: Bulls trying to defend descending channel support, around mid-1.2900s

  • GBP/USD remains under some selling pressure on the first day of a new week.
  • Slightly oversold conditions on hourly charts might help limit any further losses.

The GBP/USD pair extended its recent rejection slide from the vicinity of the 1.3200 handle and witnessed some follow-through selling for the fifth consecutive session on Monday.

The downward trajectory – marking the seventh day of a negative move in the previous eight – dragged the pair farther below the key 1.30 psychological mark, or over two-week lows.

Over the past two weeks or so the pair has been drifting lower along a descending trend-channel formation on short-term charts that clearly points to a well established bearish trend.

Meanwhile, technical indicators on the daily chart have just started gaining negative momentum and further reinforce the bearish outlook amid markets concerns about a no-deal Brexit.

However, slightly oversold conditions on hourly charts seemed to be the only factor holding investors from placing any aggressive bearish bets and help defend the trend-channel support.

Hence, it will be prudent to wait for some strong follow-through selling below the mentioned support, currently near mid-1.2900s before positioning for any further depreciating move.

GBP/USD 4-hourly chart

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