The GBP/USD chart exhibits bearish momentum, as indicated by the potential for a bearish reaction at the first resistance level of 1.2583 and a subsequent drop towards the first support level of 1.2540. The first support level is considered an overlap support, which may provide a level of support for the price if it reaches that level. Additionally, the second support level at 1.2498 is also an overlap support and could potentially provide further support for the price if it drops below the first support level.
Regarding resistance levels, the first resistance level at 1.2583 is a swing high resistance and coincides with a 78.60% Fibonacci projection. If the price breaks through this level, it may rise towards the second resistance level at 1.2623, which is also a swing high resistance and coincides with a -27% Fibonacci expansion and a 127.20% Fibonacci extension. This suggests that the price may face strong resistance in this area, indicating a potential area of exhaustion for bullish momentum.
