Technical Analysis: GBPUSD remains weak below 200-day SMA after UK GDP

After witnessing downbeat UK data dump for April, including over 20% fall in GDP, GBPUSD remains on the back foot below the key SMA. As a result, the sellers can keep targeting a 50% Fibonacci retracement level of 1.2460 during the further declines. However, an ascending trend line from March 20 could restrict the pair's further fall around 1.2380. In a case where the bears dominate past-1.2380, May month low near 1.2075 could be challenged.

On the upside, 61.8% of Fibonacci retracement at 1.2710 offers additional resistance to the pair beyond a 200-day SMA level of 1.2680. Even if the pair manage to cross 1.2710 daily, a six-month-old descending resistance line near 1.2845 becomes the key to watch. The reason is the pair's likely bulls run towards March month high around 1.3200.

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