GBP/USD Moves Lower

The Sterling is having a time of depreciation this month as GBP/USD is down from 1.3260 to around 1.28. Main trend on the short term is strongly bearish. The pair does not even have a chance to go up as the British economy appears to be dragging behind expectations.

Fundamentals aside, technicals are showing a confirmation of the weak economic state of the British Kingdom. The pair was bought out at the highest point which reached the resistance level in the upward medium term trading channel and immediately Sterling bears took the opportunity and shorted the pair.

Now they are hoping to get to the resistance level first at the 200SMA at 1.2640 and second at the lower line of the upward trading channel at 1.2430.

Chart: GBP/USD D1