GBPUSD Testing Major Support

The pound continued to fall on Monday and the GBPUSD pair, also known as the cable, was trading half a percent weaker during the Frankfurt session, hovering at around 1.2760.

The pound continued to fall on Monday and the GBPUSD pair, also known as the cable, was trading half a percent weaker during the Frankfurt session, hovering at around 1.2760.

It looks like this is the last major support as previous lows are located here and this support has been tested a couple of times already. Thus, if the price declines below this level, larger stop-losses of long positions could be hit, which will most likely send the pair further lower. 

The next target for bears might be near September 2019 highs in the 1.2550-1.2560 region. However, as long as the pair trades above the mentioned support, the dip could be bought again, therefore the short-term outlook seems carefully bullish.

The resistance could be spotted at broken lows of 1.2910 and if the cable stays below this level, the medium-term outlook seems bearish. Thus, short-term traders will probably watch how sterling behaves between 1.2750 - 1.2910 and wait for a possible breakout or breakdown from this range to initiate new positions. 

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