GBP/USD: Break below 1.1920 could fuel more downward pressure – OCBC

GBP/USD suffered heavy losses and closed below 1.2000 on Thursday. A break under the 1.1920 mark could trigger another leg lower, economists at OCBC Bank report.

Descending triangle?

“Daily momentum and RSI indicators are not showing a clear bias. But on the weekly chart, bullish momentum is fading fast while RSI fell.”

“A potential descending triangle could be forming with support at 1.1920 levels (200-DMA, triangle support). A decisive break to the downside could fuel more downward pressure. Next support at 1.1840, 1.1720 levels.”

“Resistance at 1.2045 (21-DMA), 1.2140 (50-DMA).”