GBP/USD plummets to 3-week lows, closer to mid-1.2300s

• GBP/USD remained depressed for the fourth consecutive session on Friday.
• Upbeat UK retails sale data failed to provide any respite to the GBP bulls.
• Technical selling below the 1.2400 mark aggravated the bearish pressure.

The bearish pressure around the British pound picked up pace during the mid-European session and pushed the GBP/USD pair to fresh three-week lows, around the 1.2360 region.

The pair extended this week's rejection slide from the very important 200-day SMA and remained heavily offered for the fourth consecutive session on Friday. The sterling did get a minor lift following the release of upbeat UK monthly retail sales data, albeit met with some fresh supply near the 1.2455 region.

The British pound was being weighed down by prospects for further monetary easing by the Bank of England. It is worth recalling that the UK central bank on Thursday decided to increase the size of its bond-buying program by £100 billion.

Meanwhile, the latest leg of a sharp fall over the past hour or so could further be attributed to some technical selling on a sustained break below the 1.2400 round-figure mark. With Friday's downfall, the GBP/USD pair has now fallen over 300 pips from the 1.2700 neighbourhood, or weekly tops, and remains vulnerable to slide further.

However, technical indicators on hourly charts are already flashing oversold conditions and warrant some caution before placing any aggressive bearish bets. This comes amid a subdued US dollar price action, which might further contribute towards limiting the downside for the GBP/USD pair amid absent relevant market-moving US economic releases.

Technical levels to watch