From a technical viewpoint, last week the pair broke through a near one-year-old ascending trend-line support. A subsequent fall and acceptance below favour bearish traders. The negative outlook is reinforced by the emergence of some fresh selling on Tuesday and supports prospects for a further near-term downward move.
Hence, a subsequent downfall back towards retesting the overnight swing lows, around the 1.3785 region, remains a distinct possibility. GBPUSD is posting losses again after a bullish day and is still remaining beneath the 1.3900 handle. The MACD is extending its negative movement beneath its trigger and zero lines.
If the pair continues to move south, it would send the market until the 1.3670 barrier, which currently stands at 1.3600. Steeper declines could open the way for the 23.6% Fibonacci retracement level of the up leg from 1.1405 to 1.4235 at 1.3577 before moving towards 1.3435.
On the flip side, momentum back above the 1.3900 mark & a jump higher could take the bulls to the 1.4000 psychological level and then until the 35-month peak of 1.4238. Slightly above this line, the January 2018 at 1.4345 could halt the bullish action
