Short intraday opportunity on the Pound

$GBPUSD started the week on a bearish tone after peaking last week on the basis of political confidence, favorable data and weakening US Dollar. Fundamentals this week need to be further stronger in order to break-out of the current 1.2522 level up and above 1.268 (recent January high).

On technical front, on the 4-hour chart, a clean completion of XABCD pattern within a narrow range (1.27 and 1.19) is seen. 3rd day in a row of a declining momentum, fading strength (RSI's quick move towards the mean) and slowing volumes indicate a further downward moment continuation.

Some levels to watch: on the downside support is seen at 1.2419 and then 1.225 before the pair plummets further lower. On the contrary, upside resistance exists at recent high of 1.2680 and then at 1.2776 (pre-flash-crash level, a desirable level to target).


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