GBP/USD aimed lower from the levels around 1.3015 this week and slipped below the 100- and 200-day MAs in the 1.2960 area. The pair is currently trading below support come resistance level at 1.2875. It actually was trading within a descending triangle pattern which supported the pair around 1.2945 but the support got violated and the decline below this point has open the way down to 1.2785.
On the one hand, daily Moving Averages are horizontal, and technically the bearish momentum is not that big. There’s a chance that the pair may try to retest 1.2960/1.30, where it will surely meet further resistance. But that is likely to happen if the US durable goods due later today and GDP growth due on Friday disappoint. On the other hand, if the American figures turn out to be strong, GBP/USD will break below the support.
Daily Technical Levels
R3: 1.3071
R2: 1.2995
R1: 1.2949
Key Trading Level: 1.2918
S1: 1.2872
S2: 1.2841
S3: 1.2765
