GBP/USD technical analysis: Buyers await the break of former support-turned-resistance
- Sustained trading below the longer-term support-line and gradually declining RSI signal the GBP/USD pair’s further downside.
- An upside clearance of 1.2550 can recall buyers.
Having breached 30-month old ascending trend-line during the previous week, GBP/USD holds the decline intact as it trades near 1.2510 heading into the UK open on Tuesday.
Given the sustained break of longer-term support-line, coupled with gradually declining but far from oversold levels of 14-bar relative strength index (RSI), the quote is likely to extend the current downpour towards current low surrounding 1.2440.
In a case bears keep dominating past-1.2440, 1.2400 round-figure and April 2017 low near 1.2365 could become their favorites.
Alternatively, pair’s successful break of support-turned-resistance-line, at 1.2550 now, can propel prices to 23.6% Fibonacci retracement of 2015 swing highs to 2016 swing lows around 1.2770.
Though, late-June low near 1.2660 can offer an intermediate halt during the pair’s anticipated recovery.
GBP/USD weekly chart
Trend: Bearish