GBP/USD technical analysis: Set-up points to a possible drop towards 1.2900 handle

   •  The pair extended its recent pullback from a resistance marked by 61.8% Fibonacci retracement level of the 1.3381-1.2866 downfall and dropped to two-week lows on Tuesday.

   •  Given the overnight break below 23.6% Fibo. level and the fact that bulls struggled to defend the very important 200-day SMA support prospects for a further near-term downside.

Meanwhile, technical indicators on daily/hourly charts have again started gaining negative momentum and are still far from being in the oversold territory further reinforce the near-term negative outlook.

Hence, any attempted bounce towards the key 1.30 psychological mark might still be seen as an opportunity to initiate fresh bearish positions for an eventual slide towards testing the 1.2900 handle.

Having said that, a sustained move beyond the 1.3030-40 supply zone might negate the bearish bias, rather prompt some short-covering move and lift the pair further towards the 1.3100 round figure mark.

GBP/USD daily chart