GBP/USD has come under fresh bearish pressure and declined below 1.2200 on Friday. The pair stays within a touching distance of the key support that aligns at 1.2175 and a failure of this level could bring in additional sellers, FXStreet’s Eren Sengezer reports.

Sellers look to take action as pound tests key support

“In case GBP/USD falls below 1.2175 (Fibonacci 23.6% retracement of the latest uptrend) and starts using that level as resistance, sellers could take action and trigger an extended downward correction toward 1.2150 (50-period SMA on the four-hour chart) and 1.2100 (Fibonacci 38.2% retracement, 100-period SMA).”

“On the upside, 1.2200 (psychological level) forms interim resistance before 1.2275 (the end-point of the uptrend) and 1.2300 (psychological level).”