GBP/USD challenges 2-week old trading range support near mid-1.3400s
| • Persistent USD buying interest keeps exerting downward pressure on Friday.
• GBP further weighed down by the recent BoE dovish tilt and Brexit concerns.
• A decisive break below mid-1.3400s might point to a fresh bearish breakdown.
The GBP/USD pair extended its steady decline from an intraday high level of 1.3528 and is currently placed just above over 2-week old trading range support.
In absence of any fresh fundamental development/economic releases, the pair's fall of around 75-80 pips could be attributed to resurgent USD demand. Following a brief pause earlier today, the US Dollar resumed with its upsurge to hit fresh multi-month lows and was seen as one of the key factors exerting downward pressure on the major.
Meanwhile, the latest dovish BoE tilt, and reemerging Brexit concerns continued dampening sentiment surrounding the British Pound and further collaborated to pair's fall back to weekly lows, which if broken would confirm a fresh bearish breakdown, paving way for an extension of the pair's near-term bearish trajectory.
Technical levels to watch
A convincing break below mid-1.3400s is likely to accelerate the slide towards the 1.3400 handle before the pair eventually extends the downfall further towards the 1.3300 handle in the near-term.
On the upside, any recovery attempts back above the key 1.3500 psychological mark might now confront fresh supply near the 1.3530 level and is followed by 200-DMA resistance near the 1.3555-60 region.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.