GBP/USD Remains In Major Downtrend Below 1.2900

Key Highlights · The British Pound declined recently and broke the 1.2800 support against the US Dollar. · There is a crucial bearish trend line in place with resistance near 1.2770 on the 4-hours chart of GBP/USD.

GBP/USD Technical Analysis Looking at the 4-hours chart, the pair earlier recovered nicely from the 1.2692 swing low to 1.3174. Later, it failed to stay in a positive zone and started a solid downward move.

The pair declined steadily and formed many swing highs near 1.3060, 1.2940, 1.2840 and 1.2800. The decline was such that the pair is now well below 1.2900 and the 200 simple moving average (green, 4-hours).

Sellers pushed the pair below the 76.4% Fib retracement level of the last wave from the 1.2692 swing low to 1.3174 high. If there is a downside break below the 1.2680-90 zone, the pair could trade towards the 1.2580 level, which is the 1.236 Fib extension level of the last wave from the 1.2692 swing low to 1.3174 high.

On the upside, there is a crucial bearish trend line in place with resistance near 1.2770. However, a proper close above the 1.2900 level and the 100 simple moving average (red, 4-hours) is needed for a solid rebound in the near term.

GBPUSD

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