GBPUSD HEAVY LOSSES EXPECTED BELOW 1.2740

The British pound has continued to slump lower against the US dollar in early Wednesday trade, with price now trading below key trendline support. Sterling risks heavy technical selling while trading below the 1.2740 level, while the pair is also approaching the neckline of a bearish head and shoulders pattern. Only a move above the 1.2882 resistance level can negate short-term selling pressures on the GBPUSD pair.

The GBPUSD pair is strongly bearish while trading below the 1.2740 level, key technical support is found at the 1.2695 and 1.2662 levels.

If the GBPUSD pair trades above the 1.2800 level, key resistance is found at the 1.2882 and 1.2900 levels.