The pound’s sharp post-U.S. election downtrend has extended further, breaking below the 1.2700 level.

The pound continues to trend downward, driven by the so-called “Trump trades,” as the dollar sees a significant rally fueled by post-election optimism.

The sharp bearish move has now extended into its fifth consecutive day, hitting a new multi-week low and nearing the target at 1.2664 (August 8 low), which protects the 1.2612 level (June 27 low). This comes as bears renewed their push below the 1.2700 support, which was breached on Wednesday but didn’t close below that level.

Although oversold conditions are evident, they haven’t yet slowed the bearish momentum; however, some price correction may be anticipated in the upcoming sessions.

The broken Fibonacci support at 1.2732 has now turned into initial resistance, with the 200-day moving average (1.2818) likely to cap any rallies, maintaining the broader bearish structure for another potential drop.

Resistance levels: 1.2700; 1.2782; 1.2818; 1.2836
Support levels: 1.2664; 1.2612; 1.2599; 1.2567