The British Pound (GBP/USD) staged a partial comeback on Monday after a brutal selloff last week. Here’s a closer look at the technical levels in play:
Recent Performance:
- GBP/USD found support at its key 200-day simple moving average (SMA) near 1.2600, halting the decline.
Potential Upside Scenario:
- If the rebound gains momentum, the pair faces resistance levels at:
- 1.2675
- 1.2700
- 1.2830 (subsequently)
Potential Downside Scenario:
- A shift in market sentiment could trigger renewed selling pressure:
- Initial support: 1.2600 (psychological level)
- If this level breaks, a steeper decline towards 1.2510 could occur.
Overall:
The GBP/USD is currently in a precarious position. While the bounce off the 200-day SMA is a positive sign, the path ahead remains uncertain. A break above the resistance levels suggests a potential continuation of the rebound. Conversely, a break below support at 1.2600 could lead to a sharper decline.