- Cable drops for the second day in a row, continues on corrective mode.
- Downside risks are rising but significant support is seen around 1.2500.
The daily chart shows still more slides likely but pound is holding above the key 20-day moving average and on top or the 1.2500 horizontal support area and above an uptrend line.
A firm slide below 1.2500 would suggests a test of the mentioned trendline near 1.2440 that if broken would leave GBP/SUD vulnerable to more losses.
The 4-hour chart also presents a configuration pointing to the downside, for a test of 1.2500 over the next hours. The negative bias will remain in place as long as it holds below 1.2570 (20-SMA in 4-hour). Further to the upside, a firm break of 1.2600 would clear the way to more gains.
GBP/USD 4-hour chart
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GBP/USD daily chart
-637280050921069239.png)
Technical levels
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