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The overnight slump in the cable managed to find some support near the 1.2440-35 horizontal zone, which should now act as a key pivotal point for short-term traders, in the opinion of FXStreet’s analyst Haresh Menghani.

Key quotes

“A convincing break through the 1.224 support might prompt some aggressive technical selling and turn the GBP/USD pair vulnerable to break below the 1.2400 mark, towards testing the 1.2370-65 support zone. The downward trajectory could further get extended towards the 1.2300 round-figure mark.”

“On the flip side, any meaningful bounce back above the 1.2500 mark now seems to confront some fresh supply near the 1.2540 region. Some follow-through buying has the potential to lift the pair back towards the 1.2600 round-figure mark.”