GBP/USD technical analysis: Plummets to near 2-week lows, farther below 1.2400 mark

• The pair extended previous session’s rejection slide from the 1.2500 handle.
• Failure to defend a confluence support further aggravates the selling pressure.

The GBP/USD pair maintained its heavily offered tone through the mid-European session on Wednesday and tumbled farther below the 1.2400 round-figure mark to near two-week lows in the last hour.
 
Given the overnight rejection near the key 1.2500 psychological mark, a subsequent fall below an important confluence support near the 1.2440-30 region further fueled the sharp intraday slide.
 
The mentioned confluence region comprised of 200-hour EMA and 23.6% Fibo. level of the 1.1958-1.2583 recent strong recovery move and might now be seen as a key trigger for bearish traders.
 
Meanwhile, technical indicators on the daily chart have been losing positive traction and just started gaining negative momentum on the 4-hourly chart, support prospects for further weakness.
 
However, oscillators on the 1-hourly chart are already flashing slightly oversold conditions and hence, the ongoing fall seems more likely to find support near 38.2% Fibo. level – around the 1.2340 region.
 
On the flip side, any attempted recovery move might now confront some fresh supply near the 1.2400 handle and is likely to remain capped near the mentioned confluence support breakpoint.

GBP/USD 1-hourly chart