GBPUSD → Weak fundamental background will weaken the pound

GBPUSD is set for further declines as the DXY will continue its strength on the back of Friday's NFP, which will weaken the pound sterling.

On d1 we see consolidation and retests of key liquidity areas. Since the opening of the session the market has been testing local areas and the pound is forming a small correction, most likely from the nearest resistance the decline may continue. On H4, the double top is forming a false break of the channel resistance and we understand the approximate resistance area. The bears are concentrated in the range of 1.2600 - 1.2700. On a weak negative backdrop, the pound may test the zones of interest and liquidity below 1.250 in the medium term. Within the range trading inside the ascending price channel, the emerging correction may lead us to trend support.

Resistance levels: 1.257, 1.2600, 1.2615, MA-50
Support levels: 1.250, 1.245, 1.2386

I expect the end of the correction at the nearest resistance with the subsequent price drop to these areas on the background of weak fundamental background.

Regards R. Linda!

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