GBP/USD Price Analysis: Hammered down to fresh 5-month lows, below 1.2600 mark

• GBP/USD witnessed some aggressive selling on Thursday and broke through important support levels.
• Extremely oversold conditions on hourly charts warrant some caution before placing fresh bearish bets.

The GBP/USD pair extended its sharp intraday decline and tumbled to fresh five-month lows, with bears now looking to extend the slide further below the 1.2600 round-figure mark.

Given the overnight rejection from a short-term descending trend-channel resistance, a subsequent break below the 1.2800 mark was seen as a key trigger for bearish traders.

The selling pressure aggravated further following a break below the lower end of the mentioned trend-channel, around the 1.2700 mark, amid a strong pickup in the USD demand.

Meanwhile, technical indicators on hourly charts are already flashing extremely oversold conditions and warrant some caution before positioning for any further depreciating move.

Hence, it will be prudent to wait for some near-term consolidation or a possible bounce back towards the 1.2660 region, which might still be utilized as a selling opportunity.

GBP/USD 1-hourly chart

Technical levels to watch