GBP/USD - Sterling Edged Sharply Lower Vs the USD - 12/07/2016 (GMT)

Sterling edged sharply lower versus the U.S. dollar breaking the 1.2700 strong barrier to the downside. The GBP/USD pair plunged more than 0.6% since yesterday after it hit a fresh two-month high at 1.2775 and currently is moving towards the 1.2625 support level. If the price breaks the latter level to the downside then could challenge the next barrier at 1.2530 which overlaps with the ascending trend line, however, the price need to go through the 50-SMA on the 4-hour chart. On the same chart, the technical indicators seem to be in agreement with the bearish thought as both of them are approaching their mid-levels. The Relative Strength Index (RSI) is falling, following the rebound on the 70 level while the MACD oscillator holds below its trigger line and is moving lower.