GBP/USD: Fresh selling pressure

GBP/USD extended the previous session's rejection slide from the 1.3200 round figure mark and dropped to levels below the 1.2900 round-figure mark. Haresh Menghani, an analyst at FXStreet, examines the cable from a technical perspective.

Key quotes

“The cable’s inability to find acceptance above a 2-1/2-month-old descending trend-line and a subsequent fall below the key 1.30 psychological mark point to the emergence of some fresh selling pressure.” 

“Some follow-through buying has the potential to lift the pair further, albeit the positive move seems more likely to remain capped near the said trend-line resistance, currently near the 1.3100 round-figure mark.”

“On the flip side, weakness back below the 1.2900 mark now seems to find some support near the 1.2865-55 region.”