GBP/USD: Topside Retest Rejected, Risk Of Follow-Through

The hourly chart exhibits enough technical credence to believe the downward pressure may continue in the near-term as the negative Brexit headlines keep piling in. The topside rejection of a short-term dynamic resistance in the form of a trendline off Feb 4th peak suggests any demand imbalance remains very weak in nature. The current conditions are characterized as an acceptance of price within a narrow range of 1.2975–1.2930, with a downward resolution to target a potential 100% extension of the range size towards the 1.2885 before price stabilizes. Both the UK-US bond yield spread (blue) and the DXY (magenta) strength are in alignment to exert further selling pressure.