GBP/USD: bears taking control testing a break for below the 1.29 handle

GBP/USD has been testing the downside of the 1.29 handle in a weak performance, resisted at 1.3100 and 1.3050 offers.

GBP/USD bears have been chipping away at the downside from below the consolidation and sideways channel between 1.3290/60 and are moving in to set up for further downside with 1.2950 as next potential resistance. Meanwhile, recent news in The Sunday Times explained that Brexit government departments are not fully staffed and Article 50 could be invoked later than currently thought as voiced by the new PM May as well as international trade minister Liam Fox. It was also explained that the elections in France in May 2017 and Germany  September 2017 could also push back the timing says the report.

GBP/USD levels

From a technical point of view, Valeria Bednarik, chief analyst at FXStreet explained "The pair is not only poised to retest the record low of 1.2793 posted last July 6th, but to extend its decline forward,  as in the daily chart, technical indicators have accelerated their declines within negative territory, with the RSI indicator nearing oversold readings, but still with room for further slides, whilst the 20 SMA regained its bearish slope above the current level," adding, "In the shorter term, the 4 hours chart shows that technical indicators also stand in bearish territory, barely bouncing from oversold readings, while the 20 SMA maintains its bearish slope around 1.2985, reinforcing the resistance area."