GBPUSD Slumps Below Support: Key Levels to Watch

GBPUSD has continued its downward trajectory, breaking below the key support level of 1.2596 and reaching a low of 1.2518. Let’s break down the technical analysis to understand where the pair might head next.

Support Levels and Potential Downturn

  • Current Support: GBPUSD faces immediate support at 1.2500.
  • Breakdown Target: If the price breaks below this level, the next potential support zone lies around 1.2400.

Resistance Levels and Potential Rebound

  • Immediate Hurdle: The first obstacle for a potential rebound is at 1.2565.
  • Breakout Target: Surpassing this resistance could lead to a rise back to 1.2630, followed by a potential retest of the previous resistance at 1.2785.

Overall Sentiment

GBPUSD’s breach of the 1.2596 support level suggests a continuation of the downtrend. A further decline towards 1.2400 seems possible if the 1.2500 support fails to hold. However, a break above 1.2565 could signal a temporary reprieve and open the door for a rise towards 1.2630 or even 1.2785.