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The GBP/USD pair once again some resilience below mid-1.2700s and staged a goodish intraday rally of over 100 pips on Tuesday. Haresh Menghani, an analyst at FXStreet analyzes the cable from a technical perspective.

Key quotes

“The overnight bounce might have negated the prospects for a probable drop to the 1.2700 mark. Hence, weakness back below the 1.2800 mark might continue to attract some dip-buying near the 1.2740-25 region.” 

“Failure to defend the mentioned support and a subsequent slide below the 1.2700 round-figure mark might now turn the cable vulnerable to accelerate the fall further towards testing its next major support near the 1.2645 horizontal zone.”

“Bulls are likely to wait for some strong follow-through buying before positioning for any further near-term appreciating move. Momentum beyond mid-1.2800s is likely to confront some fresh supply near 1.2875-80 region.”