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GBP/USD hovers around 1.2310, after a brief ascent to a weekly high of 1.2337.
Potential death-cross formation on the horizon signals possible further downtrend for the pair.
Key levels to watch: 1.2300 support and 1.2400 resistance, with broader implications for trend direction.
GBP/USD prints minuscule losses as Thursday’s Asian session begins after enjoying modest gains of 0.22%, which dragged the exchange rate towards a weekly high of 1.2337. However, late in the New York session, the major retreated towards 1.2310, where the exchange rate oscillates at the time of writing.
Data from the United States (US) did little to help the Greenback (USD) offset its losses versus the Pound Sterling (GBP).
From a technical standpoint, the GBP/USD remains in a downtrend, which could be confirmed with the 50-day moving average (DMA) about to cross below the 200-DMA, forming a death-cross that implies the major could extend its losses. In that event, the major first support would be 1.2300, which, once cleared, could pave the way for a dip to the October 4 cycle low of 1.2037. A breach of the latter would expose the year-to-date (YTD) low of 1.1802.
Conversely, the GBP/USD must reclaim 1.2400 for a bullish continuation before launching an attack toward the 200-DMA at 1.2442.
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