GBP/USD downslide gains momentum, 1.30 at risk

The GBP/USD pair extended its reversal from Thursday's weekly high and dropped to 1.3000 mark before bouncing off few pips from session lows to currently trade around 1.3015 region. 

With an empty UK economic docket, a broad based US Dollar recovery turns out to be the sole driver of renewed selling pressure around the major. Moreover, the pair's inability to sustain its recovery strength back above 1.3100 handle suggests heavy supply at higher levels, which seems to force short-term traders to unwind their near-term bullish bets. 

As Carol Harmer, Founder at charmertradingacademy.com, notes, "We traded higher yesterday to 1.3120 and any longs taken were covered to this resistance...Today both the short and medium term stochastics are pointing higher from oversold conditions therefore even though it is Friday there is still a case currently for buying weakness in the market...."

She further writes, "We have trendline support coming in at 1.3015 and although it is small...it is there...so we would be looking to instate long position down to this support...We can actually keep stops quite tight on this market now in the 1.2975 region, as if we break below here there will look to be further downside pressure evident..."

Technical levels to watch

Weakness below 1.3000 handle is likely to find support near 1.2990-80 area, which if broken is likely to attract fresh selling pressure and turn the pair vulnerable to extend its slide further towards its next major support near 1.2930 level. 

On the upside, recovery momentum above 1.3030 level now seems to confront strong resistance near 1.3085-90 region above which the pair is likely to head back towards weekly high resistance near 1.3120 before aiming to reclaim 1.3200 handle.