GBPUSD broke below a major support level of 1.2900 on Monday and had a daily close below it for the first time since July 7. This level will now act as immediate resistance.
A move back above 1.2900 would extend the consolidation pattern (since early July).
Downside pressure still remains as the RSI is trending down and is in bearish territory below 50. There is scope to retest the 31-year low of 1.2794 that was hit on July 6.
GBPUSD has been on a downward trajectory since mid-June 2015. The 50-day and 200-day moving averages are falling, which support the bearish outlook. A move above the key psychological level of 1.5000 would shift the outlook which is currently neutral to bearish.
Origin: XM
