GBPUSD - Going deeper

GBPUSD (1H) - short term bearish bias

The pound sterling starts to drift lower again as part of a deeper retracement. The break below the previous support level of 1.3070 has put cable under new pressure. The 20-hour moving average has crossed below the 30-hour one in a typical bearish move. As the RSI dipped into the over-sold area, the price has over-extended to the downside. We could expect a temporary relief as the pair pulls back around the moving averages which will act as resistance. The trend line near 1.2970 will be the next target.

Key support: 1.2970
Key resistance: 1.3120