GBPUSD is remaining under pressure during this month and it completed a fresh four-and-a-half-month low around 1.2600 in the preceding week. Currently, the pair has been holding beneath the red Tenkan-sen line as well as below the 23.6% Fibonacci retracement level of the downfall from 1.3380 to 1.2600, near 1.2790, suggesting more losses in the market.
However, turning attention to the technical indicators, the RSI seems to be overstretched as it returned above the overbought zone but is still flattening in negative territory. The MACD is moving sideways below its red trigger and zero lines.
If prices continue to edge sharply lower, support should come from the multi-month low of 1.2600, while a successful penetration of this level could reinforce the short-term strong downward movement and open the way towards the 1.2475 hurdle.
On the other side, should an upside correction take place, immediate resistance could be faced near the 1.2770 barrier and the 23.6% Fibonacci near 1.2790. If there is a break above this significant area, the price could jump towards 1.2865, which coincides with the 20-day simple moving average (SMA).
Concluding, the decline beneath the 1.3175 obstacle has endorsed the bearish run in the short-term and traders can now turn their focus to critical levels to the downside.
