As the various simple moving averages approached the currency exchange rate, the GBP/USD plummeted down below the support line of a medium scale ascending pattern. The event resulted in a sharp decline on Tuesday morning.
During the decline the pair passed the support of the weekly S1 at the 1.2750 mark. Due to that reason the rate is expected to reach for the next support level during today’s trading session. Namely, the 1.2676 level will be targeted. At that level the second weekly support is located.
On the other hand, any sharp decline is usually followed by a retracement upwards or a consolidation period. In addition, note the background Brexit fundamentals, which creates sharp moves in the rate.
