GBP/USD: Looking for support

Haresh Menghani from FXStreet analyzes the technical outlook of the cable amid weaker sentiment following Brexit uncertainties and US dollar strength.

Key quotes

“The bearish pressure now seems to have abated near confluence support comprising of 100-day SMA and 38.2% Fibonacci level of the 1.1958-1.3516 positive move.” 

“Some follow-through selling below the mentioned support would expose the 1.2830-25 horizontal support ahead of the 1.2800 round-figure mark. The downward momentum could further get extended towards 50% Fibo. level, around the 2735-30 region, en-route the very important 200-day SMA support – sub-1.2700 levels.”