GBP/USD: consolidation phase below 1.30 - FXStreet

Valeria Bednarik, chief analyst at FXStreet, highlighted that below the 1.3000 handle, GBP/USD is vulnerable towards the downside and technicals remain within negative area.

Key Quotes:

"The GBP/USD pair plunged to its lowest  since mid August, printing 1.2946 early US session, and following the technical break of the critical 1.3000 figure. There was no catalyst beyond Pound's decline, as the UK has no released macroeconomic data so far this week, but BOE's latest decision still weighs negatively on investors sentiment over the Sterling, while latest UK Theresa May comments, suggest the Brexit will take place no matter what, after some rumors doing the round of a possible second referendum"

"In the 4 hours chart,  the 20 SMA maintains a strong bearish slope well above the current level, now around 1.3075, while technical indicators have bounced modestly from oversold readings, but remain within negative territory, far from suggesting the downward move is exhausted. Renewed selling pressure below 1.2940, the immediate support, will likely see the pair extending down to the 1.2793 level, the post-Brexit low, particularly if the FED offers more than what the market is actually expecting."