The GBP/USD pair stalled its recent strong bullish momentum just ahead of the 1.2500 round-figure mark. Haresh Menghani, an analyst at FXStreet, takes a look at the cable’s technical outlook.
“The 1.2500 handle coincides with the 61.8% Fibonacci level of the 1.3200-1.1412 steep fall and should now act as a key pivotal point for short-term traders.”
“A convincing breakthrough might prompt a fresh wave of the short-covering move and pave the way for a further near-term appreciating move. The pair then might accelerate the momentum further towards the 1.2600 round-figure mark ahead of the 1.2625 supply zone.”
“50% Fibo. level, around the 1.2310 region now seems to protect the immediate downside, below which the pair might slide back towards testing the 1.2200 round-figure mark.”