FX.co ★ GBP/USD Technical Outlook for September 23, 2020

GBP/USD suffered a three-day bearish streak and appears to be sliding off from the yearly high (1.348).This pair forms a continuation pattern by breaking its previous swing low just in the middle of the significant key level 1.2740.

The cable dropped to the lowest level since July 23rd in the previous day but a confluence 61.8% Fibonacci retracement level of its late-June to the early-September restricts immediate downside.

GBP/USD finds decent support and respects it near the lower end of an ascending trendline. This support becomes the key to watch as a daily closing beneath probably igniting a downside move.

If there is a follow-through selling pressure beyond the 1.2700 round figure, will flash on the bears' radar. This pair could then accelerate the fall further to test 1.2550 or 1.2300, a key psychological mark confluence with the Fibonacci Expansion levels .