GBP/USD continues to decline because many expect the Fed to increase its interest rates more aggressively at its next meeting. When comparing it to the monetary policy of the Bank of England, the latter is clearly losing, which is highly likely to put pressure on the pair during the few days before the Fed meeting.
Technical picture:The quote is below the middle line of the Bollinger indicator, above SMA 5, but below the SMA 14. The relative strength index (RSI) is moving towards the oversold zone, while the stochastic indicator is already in that area.
Possible dynamics:The pair may rise to 1.2655, but if it stays below that level, it will continue falling towards 1.2440.