GBP/USD has dropped below 1.28 as the BOE pledged to take all steps to protect stability. Earlier, cable rose in response to the Fed's announcement of help to markets. PMIs are eyed.
From a technical perspective, the pair on Friday broke below a two-month-old descending trend-channel and the set-up supports prospects for a further near-term downside. Hence, any subsequent positive move towards the 1.2875-80 region might still be seen as an opportunity to initiate fresh bearish positions.
That said, a sustained move above the mentioned barrier, leading to a subsequent strength beyond the 1.2900 handles might negate the negative outlook and set the stage for a move towards reclaiming the key 1.30 psychological mark. The latter coincides with 50-day SMA and should act as a key pivotal point for the pair’s next leg of a directional move.
