GBP/USD Broke all The Levels and Plunged Below 1.2200

The cable crushed early on Monday morning on the back of U.K. Prime Minister Theresa May comments about Brexit during the weekend. The PM during an interview signaled that Britain will pursue the so-called “hard-Brexit” from the European Union and following Monday’s opening the British Pound fell vigorously about 1% broadly. GBP/USD plunged 0.9%, GBP/JPY dived 1.6% while EUR/GBP jumped 1% higher. She refused to “keep bits of membership” to the EU and expressed her willing, the country to leave completely the union. “We are leaving. We are coming out. We are not going to be a member of the EU any longer”, she stated.

GBP/USD from the Technical Point of View
Sterling managed to move higher during the first week of January versus the U.S. dollar, however, it failed to surprise as it didn’t surpass above the 1.2430 strong key level. The GBP/USD pair plummeted more than 2% since Friday. During today’s session, the pair printed a fresh two-month low and met the 1.2123 price level which is slightly above the next support barrier at 1.2115.

On the 4-hour chart, the pair rebounded on the 1.2430 obstacle and started a significant bearish movement until the next aforementioned support level or furthermore until the 1.2080 barrier. The price slipped below the three SMAs (50-SMA, 100-SMA and 200-SMA) while the RSI indicator is falling with strong momentum as it is approaching the oversold area. The MACD oscillator is also moving lower and entered the negative territory.