GBP/USD technical analysis: Nosedives to mid-1.2000s, lowest since Jan. 2017

• After an initial uptick to mid-1.2100s, the GBP/USD pair came under some renewed selling pressure and tumbled to near 32-month lows in the aftermath of dismal UK GDP growth figures.
• The fact that the pair finally found acceptance below the 1.2100 handle and fell below the previous multi-month lows - around the 1.2080 region was seen as a key trigger for bearish traders.

Meanwhile, the ongoing steep intraday decline seemed rather unaffected by extremely oversold conditions on hourly/daily charts and clearly indicates that the near-term bearish pressure might still be far from being over.
 
A follow-through selling has the potential to continue exerting downward pressure on the major and hence, a subsequent fall – possibly towards challenging the key 1.20 psychological mark – now looks a distinct possibility.
 
On the flip side, any attempted recovery now seems to confront some supply near the 1.2080 support breakpoint turned resistance and is closely followed by the 1.2100 handle, which if cleared might prompt some near-term short-covering bounce.

GBP/USD 1-hourly chart