GBP/USD breaks to a new wave low at the end of the week on the 4-hour chart

• GBP/USD dropped 0.64% on Friday after underperforming for the session.
• The price could find some support soon as there is a decent level close to the current price level.

GBP/USD 4-hour chart

GBP/USD has pushed lower on Friday to end the week on a negative note. The price has just printed below the previous wave low and this will be the third weekly bearish close in a row unless there is some miracle before the US close.

Just below 1.23, there is a support level that could stem the losses. If the price breaks beyond that then there could be a further capitulation toward the main support low on the chart of 1.2086.

The Relative Strength Index looks to be setting up for a potential bearish divergence. This is when the market makes a lower low wave and the indicator makes a higher low. As GBP is such a risk-sensitive currency the Chinese manufacturing PMI data could have a big impact along with the NFP data at the end of the week.

Additional levels