GBP/USD: Near-term depreciating move

The GBP/USD pair came under some heavy selling pressure on Wednesday and tumbled to over one-week lows, around the 1.2900 round-figure mark. Haresh Menghani, an analyst at FXStreet, analyzes the cable from a technical perspective.

Key quotes

“The recent rejection slide from 50-day SMA and a subsequent slump back below the 100-day SMA on Wednesday might have already set the stage for a further near-term depreciating move.” 

“A fall back towards challenging YTD lows, around the 1.2870 region, now looks a distinct possibility. Some follow-through weakness might prompt some aggressive technical selling and pave the way for a slide towards testing sub-1.2800 levels.”

“The 50-day SMA barrier, currently near mid-1.3000s remains a key barrier, which needs to be taken out to negate any near-term bearish bias.”