OctaFX | OctaFX Forex Broker
Open trading account
Back

GBP/USD Price Analysis: Remains vulnerable to slide further, possibly towards sub-1.2900 levels

  • GBP/USD extends the previous session’s pullback and weakens farther below 1.30 mark.
  • Bears are likely to aim towards testing a short-term descending trend-channel support.

The GBP/USD pair remained depressed for the second consecutive session and extended the previous session's sharp intraday pullback from levels beyond the 1.3100 round-figure mark.

The pair weakened farther below the key 1.30 psychological mark, albeit has managed to find some support ahead of monthly swing lows, around the 1.2950-45 region set on January 14.

Meanwhile, the recent price action over the past three weeks or so has been confined well within a descending trend-channel formation, which points to a well-established bearish trend.

Technical indicators on hourly/daily charts maintained their negative bias and further support prospects for an extension of the recent sharp pullback from the post-UK election swing highs.

Some follow-through selling below monthly lows will reaffirm the bearish outlook and accelerate the slide towards sub-1.2900 levels, or the lower end of the descending trend channel.

On the flip side, the 1.3000-1.3010 region now seems to act as an immediate resistance, above which the pair could climb towards the 1.3050-55 zone en-route the 1.3085 supply zone (channel resistance).

GBP/USD 4-hourly chart

fxsoriginal

 

EUR/JPY: Door open for a correction lower – Commerzbank

After failing to extend the rally further north of the 122.60 region, the cross is now expected to face downside pressure, noted Karen Jones, Team Hea
Read more Previous

EUR/JPY Price Analysis: Door open for a corrective downside

The upside momentum in EUR/JPY appears to have run out of steam in the vicinity of the key barrier at 123.00 the figure, sparking a sharp correction t
Read more Next
Start livechat