GBP/USD technical analysis: Holds above 200-hour SMA/38.2% Fibo. confluence support, only for the time being

• The GBP/USD pair now seemed struggling to find acceptance above the 1.2700 handle and now seems to have snapped three consecutive days of winning streak.
• The intraday downtick dragged the pair to a support marked by 38.2% Fibonacci retracement level of the 1.2506-1.2727 recent bounce from multi-month lows.

The mentioned support coincides with 200-hour SMA and should now act as a key pivotal point for intraday traders. Below the said confluence support, the pair is likely to accelerate the slide further towards challenging the 1.2600 handle.

Meanwhile, mixed technical indicators on 1-hourly and 4-hourly charts haven’t been supportive of any firm intraday direction, warranting some caution before placing any aggressive bets. However, oscillators on the daily chart maintained their bearish bias and support prospects for a further near-term depreciating move.

Hence, any attempted move back above the 1.2700 handle might still be seen as a selling opportunity. Only a sustained move beyond the 1.2750-60 heavy supply zone, which has been acting as a key barrier over the past four weeks or so, might negative the negative outlook and lead to some short-covering move in the near-term.

GBP/USD 1-hourly chart