• GBP/USD extends the previous day’s pullback from three-week high.
• An eight-day-old rising support line probes intraday sellers.
• Bearish MACD signals, U-turn below 200-EMA hints at the further downside.

GBP/USD takes offers to refresh intraday low around 1.2520, extending the U-turn from the 200-EMA towards breaking a one-week-old support line during Wednesday’s Asian session.

Given the cable pair’s inability to cross the 200-EMA, coupled with the bearish MACD signals, the quote is likely to break the immediate support near 1.2520.

The same can direct GBP/USD prices towards one-month-old horizontal support around 1.2420-15.

However, any further downside past 1.2415, will not hesitate to challenge 1.2260 and the monthly low surrounding 1.2155.

Alternatively, the 200-EMA level of 1.2606 restricts the GBP/USD pair’s immediate upside ahead of the monthly peak of 1.2638.

Should the pair buyers manage to cross the 1.2638 hurdle, a convergence of a downward sloping trend line from mid-April and 61.8% Fibonacci retracement (Fibo.) of April-May declines, around 1.2770, will be in the spotlight.

GBP/USD: Four-hour chart

Trend: Further weakness expected