TechnoMeter

The bearish move in the British Pound has continued into another week. After displaying a semblance of support around the key level of 1.3500 in the first couple of weeks of May, GBP/USD posed a downside break at the start of last week to continue the move, and with a heavy outlay of UK data on the calendar, the potential for a deeper bearish move was there.



At this point, we've seen a bit of support show-up in a familiar area. The zone that runs from 1.3269-1.3321 is an area that helped to mark resistance in August, October and November of last year; then becoming support in December before the pair launched up to fresh post-Brexit highs.

At this point, the primary complication with longer-term stances around GBP/USD is just how oversold the move has become. RSI has been in oversold territory for the entire month of May, and while this doesn’t preclude further declines, it does make the prospect of such a bit more distant.

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