The GBP/USD pair started to decline at the beginning of today's European session after strengthening during the Asian trading session. The driver of the pound's weakening and the GBP/USD fall was the release of macroeconomic data from the UK at 06:00 (GMT), which came in weaker than expected.
GBP/USD had risen at the end of the previous week and at the beginning of this week. However, this can largely be attributed to the weakening of the dollar rather than the strengthening of the pound.
At the same time, the pair remains in the medium and long-term bearish market zone, below the key resistance levels of 1.2440 (200 EMA on the daily chart) and 1.2770 (200 EMA on the weekly chart), respectively. Therefore, new signs of dollar strength will lead to the resumption of the GBP/USD decline.
From a technical point of view, a break below the support levels at 1.2288 (200 EMA on the 15-minute chart) and 1.2269 (yesterday's low) will be the first signal for the resumption of short positions, with a break below the significant short-term support level at 1.2232 (200 EMA on the 1-hour chart) confirming this. The nearest downside target is near the local low of 1.2040.
In an alternative scenario, after breaking above the resistance levels at 1.2337 (yesterday's high) and 1.2350 (200 EMA on the 4-hour chart), the upward movement will continue towards the key resistance levels at 1.2440 and 1.2470 (144 EMA on the daily chart). In the event of their breakout, GBP/USD will return to the medium-term bullish market zone, and after breaking above the key resistance level of 1.2770 (200 EMA on the weekly chart), it will enter the long-term bullish market zone.
Support Levels: 1.2288, 1.2269, 1.2232, 1.2200, 1.2115, 1.2100, 1.2040, 1.2000, 1.1920, 1.1900, 1.1800
Resistance levels: 1.2337, 1.2350, 1.2400, 1.2470, 1.2500, 1.2580, 1.2600, 1.2635, 1.2700, 1.2770, 1.2800, 1.2900, 1.2995, 1.3100, 1.3140, 1.3200
