GBPUSD having troubles with 1.2670 resistance


The GBPUSD pair was flat on Monday and was seen trading at around 1.2615 during the US session as the pound is having some serious difficulties getting above the strong resistance of 1.2670.

As you can see on the chart, cable has already failed three times at this resistance. However, the sell-off has been only very mild every time. Therefore, it looks like a bullish consolidation, which could result in a strong breakout move. 

Until then, the short-term outlook seems neutral as volatility has declined, and sterling lacks momentum.

If the mentioned resistance is broken to the upside, we could see a more substantial rally targeting the June's highs near 1.28. From the medium-term perspective, the GBPUSD pair might attack the psychological level of 1.30.

The US dollar seems to be entering a bearish trend globally, which could help the bulls here to push the pound toward 1.30.

Alternatively, should sentiment worsen, the intraday supports should be located at 1.2590 and afterward at around 1.2570.
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