The Slump Of The Cable

Amid the holidays conditions with a quite trading along with thin volatility at the end of the year, the GBP/USD pair collapsed today and reached 1.2200. It’s a remarkable slump as the pair has not been visiting such levels since 1994, having in mind the October 25th low at 1.2080.The macro data coming from the UK today showed strong figures as the consumer credit growth is stable. But what is dragging the Pound down is the fear of uncertainty elicited by the Brexit implementation. The attempts for any recovery remains sluggish and in a depressed mood and overall outlook for the Pound does not inspire much optimism.

Technical readings are showing that the power is now with the bears. The Cable is now places well below the 100-day and 200-day SMA. Currently the price is keeping together with the very bearish 20-day SMA. RSI is trying to recover from the extreme oversold conditions. Stochastic is confirmng the strong downward slope and is also placed withing ultimate north area. 

Today’s intraday low is an important support now. If the pair crosses below, bears might try to conquer lower levels. Resistance is see at 1.2245 and at 1.2300.