GBP/USD fell sharply last week, closing below 1.2600 as sellers took control amid renewed US dollar strength. The move suggests further downside momentum, with attention now on whether the pair can hold above the immediate support at 1.2517. A decisive break below this level could pave the way for a deeper drop towards the 1.2445 zone, while resistance now sits near 1.2699, with any bounce likely limited unless the broader dollar trend reverses.
Technical indicators remain negative, confirming bearish sentiment in the near term. While a recovery above 1.2699 might lessen some downward pressure, persistent selling interest keeps the market bias tilted towards the downside. Traders will be closely monitoring upcoming UK data and Federal Reserve commentary for potential catalysts that could impact GBP/USD’s next direction.
Read more on this AUD/USD trading article.