GBP/USD Prices Testing Support- Risk for Further Losses Remains
Technical Outlook: GBP/USD has been trading within the confines of an ascending pitchfork formation dating back to last year with an outside-day reversal at the highs shifting our focus lower earlier this month. Prices broke below slope support today with the decline now testing the 61.8% retracement at 1.2850. Note that the 200-day moving average also converges on this region and may offer stronger near-term support.
That said, the focus remains lower while below the 50-line with a break lower targeting the lower parallel, currently just above the 1.27-handle- an area of interest for possible long-entries with broader bullish invalidation steady at 1.2616/28– a region defined by the 200-day moving average and the 50% retracement.