On Monday, the cable was up 0.6%, trading at around 1.2880 and investors might start focusing on the one thing that matters the most and that is how much is the Fed printing. A lot.
Therefore, the long-term trend in this currency pair still seems bullish and dips could be bought.
However, the main resistance for sterling now remains at previous lows of 1.30 and as long as the pound trades below this level, the short-term trend doesn't look so well.
If the GBPUSD pair manages to jump above this level, we could see another leg higher toward the current cycle highs at 1.34.
Alternatively, the support could be at last week's lows near 1.2760 and if broken to the downside, a decline toward 1.25 could occur.