GBPUSD WATCHING SUPPORT

The British pound is under downside pressure against the US dollar after the Bank of England hinted that they may cut interest rates this month. A loss of key Fibonacci support, around the 1.2750 level could see the GBPUSD pair tumbling towards the 1.2550 level. Only gains above the 1.2960 level will increase the possibility that a medium-term price floor is now in place.

• The GBPUSD pair is only bearish while trading below the 1.2960 level, key support is found at the 1.2750 and 1.2710 levels.

• The GBPUSD pair is only bullish while trading above the 1.2960 level, key resistance is found at the 1.3060 and 1.3100 levels.