The current momentum of the GBP/USD chart is bearish, indicating that we may see further price drops in the near future. The current price is trading at around 1.2485.
If the bearish trend continues, the price could potentially react bearishly off the 1st resistance level of 1.2521 and drop towards the 1st support level of 1.2428. This support level is an overlap support level that has previously shown strength in holding the price up.
Should the price break through the 1st support level, the next support level is the 2nd support level at 1.2343, which is another overlap support level that the price has bounced off multiple times in the past.
On the resistance side, we have the 1st resistance level at 1.2521, which is a pullback resistance level and also coincides with a 61.80% Fibonacci Projection level. This makes it a strong level of resistance that the price may struggle to break through.
If the price were to break through the 1st resistance level, the next resistance level is the 2nd resistance level at 1.2588, which is a swing high resistance level that marks the high point of a previous bullish trend. This level also coincides with a 138.20% Fibonacci Extension level, which makes it a strong level of resistance.