Following the sharp decline witnessed in the early European session, GBP/USD managed to recover above 1.2900 but came under renewed bearish pressure in the American trading hours. The pair remains on track to register its lowest weekly close since September 2020.
The Relative Strength Index (RSI) indicator on the four-hour chart fell below 30 early Friday. Although this development suggests that the pair could stage a correction before the next leg lower, buyers are likely to stay on the sidelines until the pair clears 1.2970 (former static support) and 1.3000 (psychological level).
On the downside, 1.2850 (static level from October 2020) aligns as the next bearish target ahead of 1.2800 (psychological level) and 1.2730 (static level from October 2020).
