GBP/USD: Prospects for an extension of the recent bearish trend

GBP/USD witnessed some aggressive short-covering move on Friday. Haresh Menghani, an analyst at FXStreet, takes a look at the cable’s technical picture for this week.

Key quotes

“The near-term bias still seems tilted in favour of bearish traders and supports prospects for an extension of the recent bearish trend.” 

“Immediate resistance is pegged near the 1.1820-30 region, marking 23.6% Fibonacci level of the 1.3191-1.1412 recent slump. A fresh bout of short-covering has the potential to lift the pair further beyond the 1.1900 round figure mark.”

“On the flip side, the 1.1500 round-figure mark now seems to have emerged as immediate strong support.”