GBP/USD - GBP/USD Fell More Than 16% The Year Prior - 01/02/2017 (GMT)

Sterling dropped more than 16.2% and remained under pressure over the past year versus the U.S. dollar. Brexit concerns will be front at the start of the new year and the real focus will be the issue of hard or soft exit from the European Union. During the last week, the British pound traded lower against almost all the its G10 counterparts, except against the U.S. dollar, the Australian Dollar and the Japanese yen.

The technical structure retained under pressure as the pair failed to surpassed the 1.2390 significant resistance level and plunged near the 1.2310 support level. Although, it found an obstacle on the 50-SMA on the 4-hour chart and now is developing higher. The next level to watch would be the aforementioned resistance obstacle and if there is a break above it, it will expose towards the 100-SMA near the 1.2430 price level. The latter SMA had a bearish crossover with the 200-SMA, however there is a place for an upside movement until there. The RSI indicator rebounded on the overbought area but now is sloping upwards whilst the MACD oscillator has just entered the positive territory with some weak momentum.